Originally published on: September 18, 2024
In a recent statement, Bitstamp’s Americas CEO and global commercial leader, Bobby Zagotta, shared insights on how the launch timing affected the performance of Ethereum exchange-traded funds (ETFs) compared to Bitcoin ETFs.
Launching in January alongside Bitcoin ETFs could have made a significant difference in the performance of Ethereum ETFs, according to Zagotta. The delay in Ether ETF launches and market conditions during that period impacted their success.
The Impact of Timing
Zagotta highlighted the challenges faced by Ether ETFs due to the prevailing market conditions when they were introduced. In contrast, Bitcoin ETFs, which launched on Jan. 10, 2024, saw substantial net inflows totaling $17.5 billion over eight months, as reported by CoinGlass data.
Ether ETFs, debuting seven months later in July, experienced approximately $600 million in net outflows within two months of trading. Zagotta believes that launching Ether ETFs concurrently with Bitcoin ETFs could have yielded better results for the former.
Market Analysis
Data from Farside Investors revealed that out of the 38 trading days since Ether ETFs began trading, less than a third recorded positive net inflows. Factors such as ongoing declines in Grayscale’s Ethereum Trust and underwhelming performance across all ETFs contributed to these outcomes.
Ethereum’s Current Standing
Zagotta acknowledged that Ethereum faces heightened competition from emerging protocols like Solana. While these alternatives are not yet on par with Ethereum in terms of application, volume, or price, they are garnering significant attention.
Looking Ahead
Despite the current challenges, Zagotta anticipates a potential turnaround for Ethereum toward the end of the year. Factors such as upcoming elections, interest rate changes, and potential regulatory advancements in the US could pave the way for a clearer path forward for Ethereum and the broader cryptocurrency market.
Future Outlook
Supporting Zagotta’s optimism, former Wall Street trader Nick Forster suggested the possibility of Ether hitting new all-time highs by the end of 2024. Although Ether has faced narrative struggles, achieving a rally remains within the realm of possibility.
In a rapidly evolving market environment, both Ethereum and altcoins hold promise for substantial price movements in the upcoming fourth quarter.
Catch the Latest Updates
For more insights and developments in the cryptocurrency space, stay tuned for the latest news on Ethereum’s journey and the evolving altcoin landscape.
