- Ethereum has ignited institutional interest amidst the backdrop of a crypto bear market.
- Six distinct Ether Futures ETFs have entered the market, beckoning investors.
- Data has unveiled the enduring bearish impact on institutional capital flows.
Amidst the backdrop of a prolonged crypto bear market, the recent green lights and launches of several Ether Futures ETFs have rekindled the enthusiasm of institutional investors towards Ethereum (ETH), the second-largest cryptocurrency by market capitalization.
Six Ether Futures Instruments Begin Trading
Starting on October 2, six distinct Ether Futures financial instruments officially commenced trading. Here’s a snapshot of these offerings, accompanied by their corresponding net expense ratios, as per CNBC:
- BitWise Ethereum Strategy ETF (AETH) with an expense ratio of 0.85%.
- Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) sports a 0.85% expense ratio.
- ProShares Ether Strategy ETF (EETH) with a net expense ratio of 0.95%.
- ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE) featuring an expense ratio of 0.95%.
- Bitcoin & Ether Market Cap Weight Strategy ETF (BETH) with a 0.95% expense ratio.
- VanEck Ethereum Strategy ETF (EFUT) boasts a lower net expense ratio of 0.66%.
There was an institutional inflow of $13 million into Ethereum products by October 4, marking the first net-positive week in a sequence of seven consecutive weeks marred by negativity.
Bear Market Shadows Cryptocurrency Institutional Investments
This recent influx is substantially smaller compared to the $200 million of institutional capital that flowed into Bitcoin (BTC) during the launch of the Bitcoin Futures ETF by ProShares in 2021. This discrepancy can be attributed to the current bearish market climate, in stark contrast to the exuberant bull market of 2021.
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Nonetheless, the extended bear market continues to cast its shadow over institutional capital flows. According to data from CoinShares, out of a total of 39 weeks since 2022, a substantial 24 weeks have seen net-negative flows (outflows), constituting 61.5% of the entire period.
On the Flipside
- Despite the recent institutional inflow of $13 million into Ethereum products, this figure is relatively modest given Ethereum’s market position.
- The $200 million influx into Bitcoin during the launch of its Futures ETF in 2021 occurred in a vastly different market climate.
Why This Matters
The introduction of six Ether Futures ETFs sparks hope among institutional investors. This development signifies a potential shift in sentiment towards ETH, the second-largest cryptocurrency, and may pave the way for renewed interest and investment, potentially influencing the broader crypto landscape.
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To learn more about Bitwise’s plans for new Bitcoin and Ether ETFs, read here:
Bitwise Unveils Exciting Plan for New Bitcoin and Ether ETFs
To stay updated on the SEC’s approval of the Valkyrie Futures ETF and gain insights into how it works, read here:
SEC Approves Major ETF: Valkyrie’s Futures Offering Explained
