Originally published on: September 18, 2024
Spot Ether exchange-traded funds (ETFs) may have missed the mark by not launching alongside Bitcoin ETFs in January, according to Bobby Zagotta, the executive spearheading Bitstamp’s operations in the United States.
Zagotta, Bitstamp’s CEO for the Americas and global commercial chief, shared his thoughts at TOKEN2049, expressing that the current market conditions might have hindered the performance of Ether ETFs since their launch.
While Bitcoin ETFs, which debuted on January 10, 2024, garnered $17.5 billion in net inflows over eight months, Ether ETFs began trading in July and have seen around $600 million in net outflows within two months.
Zagotta noted that the timing of Ether ETFs’ launch, coinciding with unfavorable market conditions for risk assets, could have impacted their success.
Had Ether ETFs launched alongside Bitcoin ETFs, Zagotta believes they would have fared better. However, with less than a third of trading days ending in positive net inflows, challenges persist for Ether ETFs due to factors such as Grayscale’s Ethereum Trust and the overall underperformance of other ETFs.
Despite facing stiff competition from alternative protocols like Solana, Zagotta remains cautiously optimistic about Ether’s future, anticipating a potential turnaround by the year’s end. He sees the fourth quarter as a promising period for the cryptocurrency market, hinting at possible price action and growth in the altcoin space.
While some experts express doubts about Ether’s ability to reach new all-time highs in 2024, others believe a rally could be on the horizon for Ether and other altcoins.
In a rapidly evolving market landscape, changes on the horizon could pave the way for Ethereum’s resurgence and success, leaving room for hope and anticipation within the crypto community.
