Ethereum ETFs See Continued Asset Losses Amid Market Challenges
Spot ethereum (ETH) exchange-traded funds (ETFs) have been losing assets for seven straight weeks.According to SoSoValue data, these ETFs experienced a net outflow of $82.4 million last week.This brings the total inflows to $2.2 billion.
Currently, all ETH ETFs hold $5.25 billion in assets. BlackRock’s ETHA and Grayscale’s ETHE lead wiht $1.85 billion each. Grayscale’s ETH mini fund has $711 million, while Fidelity’s FETH holds $580 million.
Spot Bitcoin ETFs, however, are performing better. Their cumulative outflows are over $35 billion, with total assets at $93 billion.
Ethereum ETFs are losing assets due to the cryptocurrency’s poor performance. ETH’s price has dropped by nearly 62% since its peak in November last year, currently at $1,655.
Unlike Bitcoin, which reached a new all-time high this year, Ethereum remains substantially below its record of $4,872. An investment of $1,000 in Ethereum in 2022 would now be worth $745,compared to $1,400 for Bitcoin.
Ethereum faces competition from layer-1 and layer-2 networks like Solana, Base, tron, and Arbitrum. This competition has made Ethereum less profitable in the crypto industry.
Data shows that other chains and apps like Uniswap, Jito, and Solana have surpassed Ethereum this year.The ETH/BTC price chart indicates a strong downtrend, moving from 0.088 in 2021 to 0.0188 today.
The pair is much lower than all moving averages, and the Average Directional Index has surged to 44. The ADX measures the strength of a trend. The ETH/BTC pair is likely to continue falling as sellers target the key support at 0.016, its lowest level in September 2019.
