Institutional Investors Bet Big On Ethereum
Despite a crypto bear market, recent approvals and ETF launches of Ether Futures have increased institutional investors’ interest in Ethereum, the second-largest cryptocurrency by market cap.
On October 2, Ether Futures began officially trading six financial products with net expense ratios. These include BitWise Ethereum Strategy ETF (AETH), Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), ProShares Ether Strategy ETF (EETH), ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE), Bitcoin & Ether Market Cap Weight Strategy ETF (BETH), and VanEck Ethereum Strategy ETF (EFUT).
James Butterfill, Head of Research at CoinShares Co., reported a $13 million institutional inflow in Ethereum products by October 4, marking the first net-positive week in a seven-week run. This inflow is less than $200 million for Bitcoin during ProShares’ Bitcoin Futures ETF launch in 2021, attributed to the current bearish market cycle rather than the euphoric bull market.
Institutional investors are still experiencing a bear market, with 24 weeks of net-negative flows out of 39 weeks total since 2022, according to CoinShares data. Ethereum saw a $101 million outflow year-to-date, while Bitcoin had a $219 million inflow. However, weekly and month-to-date flows for both assets were similar, with $16.4 million and $12.9 million inflows, respectively.
(With inputs from Shikha Singh)
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