After the SEC approved the launch of spot Ethereum ETFs, they finally debuted last Tuesday. However, the initial results have been somewhat disappointing when compared to the spot Bitcoin ETF launch earlier this year.
According to CryptoPotato, the nine spot Ethereum ETFs had a strong first day, attracting over $106 million in net flows. While the Grayscale fund (ETHE) experienced significant withdrawals of nearly $500 million, other funds like ETHA and ETHW managed to balance it out.
In the following days, the trend shifted as daily outflows surpassed inflows. On July 24, $133.3 million was withdrawn, followed by $152.4 million on July 25, and $162.7 million on July 26. The outflows continued to increase, with ETHE alone losing $326.9 million, $346.2 million, and $356.3 million on those days.
Despite the decline in demand for Ethereum ETFs, especially ETHE, the remaining products like ETHA and FETH were unable to compensate for the massive withdrawals. In total, $341.8 million was taken out of spot Ethereum ETFs in the first four days of trading.
In contrast, the launch of spot Bitcoin ETFs saw a much more positive response. In just four days, over $1.260 billion flowed into the BTC ecosystem, showcasing a significant difference in demand compared to Ethereum ETFs.
Interestingly, the price performances of Bitcoin and Ethereum following the launch of their respective ETFs were unexpected. Despite the substantial inflows into the Bitcoin ecosystem, the price of BTC only saw a temporary surge from $45,000 to $49,000 before dropping to $41,300 by the fourth day.
On the other hand, Ethereum started with a price drop from $3,500 to $3,000 due to the outflows but managed to bounce back to around $3,300. This resulted in a 6.5% decrease in the price of ether, while Bitcoin experienced a 16% decline despite the success of its ETFs.
Overall, the comparison between Ethereum ETFs and Bitcoin ETFs reveals the contrasting responses from investors and the market dynamics affecting the price performances of these two popular cryptocurrencies.