The nine-spot ethereum ETFs recorded a poor inflow of $51 million only despite Ethereum surging past the $4,000 mark yesterday.
The poor performance is a sharp contrast from last week when the Ether ETFs pulled in over $852 million during the five trading days.
Ether ETFS started the week pulling in only $51 million despite the ethereum price surging to new levels.
Farside Investors UK revealed that Blackrock’s ETHA pulled in the bulk of the inflows recording an inflow of $30.7 million.
Bitwise ETHW, Grayscale’s ETH, and Fidelity’s Feth recorded inflows of $8.7 million, $7.6 million, and $4.1 million respectively.
The remaining five Ether ETFs did not record any action for the day.
Monday’s trading took the cumulative Total net inflow for all nine Ether ETFs to $2.32 billion and the total value traded to $856 million per data from Sosovalue.
Ethereum inches closer to breaking three year all-time high
Ethereum is approaching its all-time high which it has been unable to cross for three years.
The second largest asset by market capitalization is currently exchanging hands for $4,008 inching close to its all-time high of $4,878.
The crypto asset is only 17.7% down from the all-time high and a possible $5000 mark for the asset next year is within range.
Ethereum ETFs underperforming compared to Bitcoin
Ethereum ETFs are underperforming compared to Bitcoin ETF products. Ethereum ETFs haven’t lived up to expectations since its launch back in July.
Robert Mitchnick, a Blackrock executive back in October explained why the asset manager’s ETF product ETHA has underperformed compared to Bitcoin’s IBIT.
He however acknowledged that despite the underperformance the ETF is still well ahead of other ETFs in other asset classes.
“It’s very rare that you see an ETF get to a billion AUM in seven weeks, as ETHA did. In most cases, it takes multiple years to never for a new ETF to get to a billion.”
It took ETHA one month to reach $1 billion, and it is still hovering around this level “ the Executive said.
The Blackrock executive explained that the Ethereum investment story is quite cumbersome and the firm is focusing on educating prospective clients first.
“ The understanding of the ETHA fund’s limitations has led BlackRock to stay committed to the education journey that we’re on with a lot of our clients”.
Therefore, it should not be expected that the Ethereum fund will perform as well as its BTC counterpart regarding flows and AUM.
“But it’s still a pretty good start,” Mitchnick added.
The disparity between both ETFs was explained by an insider who perfectly understands the dynamics and warned the public not to compare both ETF products.
Blackrock’s IBIT took only 15 days to hit the $2 billion mark while it took Blackrock’s ETHA a full month to hit $1 billion.
