Ethereum ETF inflows climb as institutional interest builds
Investors face unrealized losses amid limited impact on ETH's spot price
Ethereum spot exchange-traded funds (ETFs) have recorded nine consecutive days of positive net inflows, signaling growing institutional interest in the digital asset.
On Thursday alone, these ETFs attracted $91.9 million, with BlackRock’s ETHA and Fidelity’s FETH contributing $50.4 million and $38.3 million, respectively, Coingape informs.
Key takeaways
- Ethereum ETFs have experienced nine straight days of positive inflows, totaling over $435 million since May 16.
- Despite the inflows, the average investor in BlackRock’s ETHA and Fidelity’s FETH is facing an unrealized loss of approximately 21%, with cost bases at $3,300 and $3,500, respectively.
- Analysts suggest that while ETF inflows indicate institutional confidence, they have minimal immediate impact on Ethereum's spot price due to the relatively small trading volumes involved.
Institutional inflows persist
The consistent inflows into Ethereum ETFs highlight a sustained institutional appetite for exposure to the cryptocurrency. BlackRock’s ETHA has seen significant accumulation, contributing to its total inflows surpassing $4.5 billion since inception.
Investor positions and market impact
Despite the positive inflow trend, the average investor in these ETFs remains "substantially underwater," according to Glassnode. With Ethereum trading around $2,600, investors are facing significant unrealized losses based on their average entry points.
Investor Cost-Basis. Source: Glassnode
Furthermore, Glassnode notes that the current ETF inflows have a limited effect on Ethereum's spot price, as these funds contribute to only a small fraction of the overall trading volume.
While the recent streak of ETF inflows underscores growing institutional interest in Ethereum, the immediate impact on the cryptocurrency's market price remains muted. Investors are advised to monitor ongoing developments, as sustained institutional participation could influence long-term market dynamics.
We wrote earlier that Ethereum ETF sees strong $15.86M inflows, signaling renewed investor confidence.
