Recently, the US Securities and Exchange Commission (SEC) delayed the decision date on options on Ethereum (ETH) spot ETFs. The date has been postponed to November 10-11 this year and major issuers of these products will have to wait.
Regulators have denied this new feature to BlackRock’s exchange-traded funds, Bitwise’s funds and one of Grayscale’s ETFs. These products are awaiting the new date to start trading options. If this new option modality is approved, it could revive the flow of capital into these investment instruments on the stock market.
It is worth noting that ETH funds have not had the best performance since they were listed on the stock exchange. Expectations were high, but not only did investors’ capital not arrive, but seed capital is leaving. This is a reality that contrasts with Bitcoin ETFs, which received billions in the first few months.
Although the latter have lost the pace of revenues of the first exchanges, they still comfortably outperform their Ethereum peers. In any case, in both cases it is a pioneering sector on very new assets such as cryptocurrencies. Hence, the cautious approach of investors cannot be viewed with pessimism.
Ethereum spot ETF performance remains well below expectations. Source: Farside
Ethereum spot ETFs continue to struggle
The SEC’s decision to delay Ethereum spot ETF options is due to the need to assess the potential implications. In the specific case of BlackRock’s fund, the Commission commented that it needed “sufficient time to consider the proposed rule change.”
On September 23, the day of the postponement, these products experienced massive capital outflows. During that day, some $79.3 million dollars left the market. However, yesterday the performance improved with positive inflows of $62.5 million, according to data from Farside Investors.
Meanwhile, Bitcoin spot ETFs extended their streak of positive inflows to a fourth consecutive day. Over the past 13 trading days, Bitcoin ETFs had positive inflows on 10 days. Meanwhile, Ethereum ETFs’ record is 8 days of outflows and only 5 positive days. In terms of the magnitude of inflows, the differences are much greater.
For many investors, Ethereum spot funds or ETFs are a disappointment, as they did not meet high expectations. The latter is reflected in the token price, which is unable to start the expected rally. Market expectations are also not at their best. Thus, 8 out of 10 bettors on Polymarket think that there will be no bull-run in this currency.
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