CEO of Bitstamp for the Americas, Bobby Zagotta believes that spot Ether ETFs would have done better if they had launched at the same time as Bitcoin ETFs in January.
He shared his thoughts during an interview with Cointelegraph at TOKEN2049, telling that market conditions haven’t favored Ether ETFs at all.
Ether ETF supply is there, but what about the demand?
Zagotta explained that the timing of the Ether ETF launch has coincided with a challenging moment for risk assets. Bitcoin ETFs began trading on January 10, 2024, and already attracted net inflows of $17.5 billion over eight months.
In contrast, Ether ETFs started trading in July and have experienced net outflows of over $600 million in just two months.
“Crypto is behaving like any other risk asset right now, which shows how much more mature this market is compared to a year or two ago.”
Zagotta pointed out that the Ether ETFs launched during a burdened moment for the markets, and he mentioned that many investors are now in a wait-and-see mode, due to uncertainties surrounding elections and regulatory issues in the U.S. He believes these factors negatively impacted the performance of the Ethereum ETFs.
“Had the Ether ETF launched when the Bitcoin ETF launched, I think it would have done better.”
What’s next for Ether ETFs?
Data shows that during the 38 trading days of the Ether ETFs, less than a third ended with positive net inflows.
This poor performance is partly due to ongoing issues with Grayscale’s Ethereum Trust and overall low activity across other ETFs.
Zagotta also mentioned that Ethereum faces tougher competition now than ever before from other blockchain protocols like Solana, which are gaining traction despite not yet matching Ethereum’s application level or trading volume.
Despite these challenges, Zagotta remains hopeful about Ethereum’s future. He believes there could be a moment of clarity approaching as we head into the end of the year, referring to potential changes in elections, interest rates, and regulatory developments in the U.S.
In Q4 we trust
Zagotta sees the fourth quarter as a time when market activity could increase and possibly lead to some bigger-ish price movements, including among altcoins.
Former Wall Street trader Nick Forster shared earlier that Ethereum might struggle to reach new all-time highs by the end of year due to its inability to capture investor interest away from tech stocks, but the market still seems optimist.
Have you read it yet? Binance will launch its own Telegram minigame, Moonbix
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
