On Tuesday, Ethereum spot exchange-traded funds (ETFs) registered a significant positive performance for the first time in nearly two months. The crypto-based investment products have seen a sluggish performance throughout September and have failed to impress investors amid the market pump.
Ethereum ETFs See Best Day Since August
Last week, spot Ethereum (ETH) ETFs saw their sixth consecutive week of negative net flows, with $26.26 million in outflows. While Bitcoin (BTC) spot ETFs continued the positive streak with their second week of inflows in a row, CoinSharesโ weekly report noted that products based on the second-largest cryptocurrency remained โoutliers.โ
In the last thirty days, the investment products were disappointing due to the continuous large outflows from Grayscale Ethereum Trust (ETHE) and the insufficient activity from the newly issued ETFs.
As reported by Bitcoinist, the investment products saw no inflows or outflows across all issuers on August 30 and September 2, which has not been seen since the launch of US spot crypto-based ETFs in January.
Additionally, the spot ETH ETFs trading volume was comparable with those before their launch, accounting for only 15% of the volume registered on their launch week in the US.
The disappointing performance continued as this week started. The ETH-based products had one of their worst days since their launch in late July, with a net outflow of $79.3 million on Monday.
Ethereum ETFs' performance in the last three weeks. Source: Farside Investorsย
This marked the Ethereum ETFsโ fifth-largest negative net flow day since their creation and their worst-performing day since July 31. While most funds saw no activity, except for ETHWโs modest $1.3 million inflows, ETHEโs outflows were led by $80.6 million.
However, Mads Eberhardt, senior analyst at Steno Research, noted that US Ethereum spot ETFs also recorded one of their largest net flows on Tuesday, but in the opposite direction. ETH ETFs recovered from the massive Monday outflows, registering $62 million in inflows on the second day of the week.
Blackockโs ETHA led the positive flows with $59.3 million, while VanEckโs ETHV and Invescoโs QETH saw a mild $1.9 and $1.3 million, respectively. The funds also saw no outflows among all issuers, including Grayscaleโs ETHE. This accounts for their third-best-performing day since July. Additionally, it became spot ETH ETFsโ and ETHAโs best day since August 6.
SEC Delays ETH ETFs Options Decision
On Tuesday, the US Securities and Exchange Commission (SEC) revealed it had extended the deadline for its decision on the Nasdaq International Securities Exchange (ISE) proposed rule change to list and trade options on Blackrockโs ETHA.
Similarly, the US regulator delayed its decision on NYSE American LCCโs proposed ruled change to trade and list options on Bitwiseโs ETHW and Grayscaleโs ETHE and Grayscaleโs Mini Trust (ETH).
The deadlines have been extended to mid-November, with Nasdaq ISEโs ruling scheduled for November 10 and NYSE American LCCโs date set for November 11. The decision follows the agencyโs recent approval of options trading for BlackRockโs iShares Bitcoin Trust (IBIT) on Nasdaq.
The approval was called a โhuge winโ for spot BTC ETFs by Bloomberg analyst Eric Balchunas, who considered that it would attract more investors and bring in more liquidity. A similar development for spot Ethereum ETFs could potentially boost the appeal of the crypto-based investment products for larger investors.
Ethereum is trading at $2,625 in the weekly chart. Source: ETHUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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