- US Ethereum ETFs had a rocky start but are poised for a strong Q4, led by BlackRock’s iShares ETHA.
- ETHA recently surpassed US$1 billion in assets, ranking it among the top 20% of performing funds.
- Fidelity’s FETH saw significant inflows, making it the second-largest US Ether fund.
- Despite gains by individual funds, the sector faces a net loss due to Grayscale’s substantial outflows.
US Ethereum’s Spot exchange-traded funds (ETFs) arguably had a harder time post-launch than BTC funds, but signs point toward a stellar fourth quarter for these funds.
As president of the ETF store, Nate Geraci, said: one of the funds is standing out and it’s the BlackRock fund. iShares ETHA exceeded US$1 billion (AU$1.44 billion) in assets last week and now sits in the top 20% of best performing funds.
ETH Funds Still Show More Combined Outflows
Last week ETHA had one of its strongest weeks since it started trading in late July, with a combined US$95.5 million (AU$137.95 million) in net inflows. Though other funds are slowly catching up – namely Fidelity’s FETH, which saw a combined US$64.8 million (AU$93.6 million) in inflows.
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This makes FETH the second largest US Ether fund with US$478.5 million (AU$691 million) compared to the next fund, Bitwise’s ETHW, which holds US$326.7 million (AU$471.7 million) in assets.
All in all, however, due to Grayscale’s US$2.89 billion (AU$4.17 billion) in net outflows, the funds combined are still in net minus with a loss of US$522.6 million (AU$754.47 million).
Derivative-based ETFs Set to Shake Up Market
While Bitcoin and Ethereum funds are doing quite well, derivative-based products continue to come up more and more in the discussion.
Although an application for Ethereum options ETFs had recently been delayed, BlackRock’s IBIT has just received the go-ahead by the US Securities and Exchange Commission (SEC) for Bitcoin ETF options.
Many industry observers believe this is a very bullish signal for Bitcoin and Co. Michael Saylor, CEO of MicroStrategy (MSTR) said this “will accelerate institutional Bitcoin adoption”.
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Eric Balchunas, senior ETF analyst at Bloomberg, believes other funds will soon follow what he described as a huge win:
Huge win for the bitcoin ETFs (as it will attract more liquidity which will in turn attract more big fish). This is nice surprise re timing but not a shocker as James Seyffart and I gave 70% odds of approval by end of May.
Eric BalchunasAdditionally, there are the leveraged funds that the SEC recently approved. As reported earlier, there are two funds which use leverage to allow investors to make long bets (leveraged at 175% and 200%) on BTC via MSTR.
And they are also doing rather well, raking in US$429 million (AU$619.9 million) combined which puts them in the 20% of the 515 ETFs in 2024.
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