Ethereum ETFs See $22M in Outflows

Ethereum ETFs Experience $22 Million in Outflows

According to data from the analytics platform SoSoValue, Ethereum exchange-traded funds (ETFs) saw a total of $22 million worth of outflows on Tuesday. This marks a concerning trend for Ethereum ETFs, with significant movements recorded in major funds.

Biggest Outflows Recorded by Major Ethereum ETFs

• BlackRock’s iShares Ethereum Trust ETF (ETHA): $11.82 million in outflows
• Fidelity Ethereum Fund (FETH): $9.75 million in outflows

These outflows mark the fifth consecutive day of losses for Ethereum ETFs, signaling a growing concern within the market. Interestingly, Bitcoin ETFs are also experiencing significant outflows, although they are seeing a notable contrast with $371 million in inflows.

Fidelity Pushes for Staking in Ethereum ETFs

The launch of Ethereum ETFs was considered a significant milestone for the leading altcoin. However, they have struggled to perform as well as their Bitcoin counterparts, mainly due to a lack of staking capabilities. Staking allows investors to earn yield, boosting profitability, and enhances the overall competitiveness of the U.S. in the digital asset space.

Staking is also an important mechanism for securing the Ethereum network, which adds to the growing concern over its absence in Ethereum ETFs.

Earlier this week, Fidelity took a significant step by requesting the U.S. regulator to approve staking for its Ethereum ETF. If granted, this approval would make it the first Ether ETF to allow staking of underlying assets.

It’s worth noting that staking is one of the top priorities for the new SEC administration, which could indicate a shift towards greater support for this feature in the future.

Ethereum’s Struggles Continue

Ethereum’s price continues to underperform, dipping to an intraday low of $1,874 earlier today on the Bitstamp exchange. Currently, Ethereum is down more than 43% year-to-date, reflecting the ongoing challenges it faces in the market.

Despite the ongoing struggles, Joseph Lubin, CEO of ConsenSys, remains optimistic about Ethereum’s future. Lubin recently stated that he has never been more bullish on the cryptocurrency after the recent market “shakeout.” He commented, “Not financial advice, of course, but we are either in, or approaching an epic setup.”

As Ethereum faces pressure in both the ETF market and price performance, the next few months could prove pivotal in determining its future trajectory in the crypto space.