According to a JPMorgan report, the SEC approval did not impact the prices of Ether or Bitcoin. What are the causes and the only optimistic sign?
At the end of July, the US Securities and Exchange Commission (SEC) approved the Ethereum ETF with high expectations in the world of cryptocurrencies. However, a report from the JPMorgan showed disappointing results after his first month in the race.
According to the North American bank, the expectation that the approval of the Bitcoin and Ethereum ETFs would boost the prices of cryptocurrencies remained just that, an expectation. In the five weeks following each launch, theEther funds suffered net outflows of US$500 millionwhile bitcoin ETFs saw net inflows of more than $5 billion, according to a JPMorgan report.
What are the causes of the outflow of funds from the Ethereum ETF?
The weak figures for ether ETFs were to be expected given bitcoin’s “first-mover advantage”, lack of staking and lower liquidity, which makes it less attractive to institutional investors.
“Due to the lower demand for spot ETH ETFs compared to bitcoin, there appears to be growing interest among asset managers to introduce a combined ETF offering exposure to both bitcoin and ETH,” the entity explained.
However, what JP Morgan did not expect was the US$$2.5 billion in Ethereum Trust (ETHE) outflows from Grayscale, more than double the $1 billion in outflows the US bank had anticipated. Grayscale has created a mini-ETH fund, but this does not seem to be having a positive effect on the fund.
ETFs.jpg
inbestme
Ethereum ETF: The Positive Sign
On the positive sideIt should be noted that the other seven Ethereum funds have accumulated net capital inflows since their creation. BlackRock’s ETHA, as in the Bitcoin space, leads the positive flows with inflows of over $1 billion, while Fidelity’s FETH and Bitwise’s ETHW are both around $400 million in net inflows.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
