Low interest on the part of institutional investors continues to hurt the new crop of spot %Ethereum (CRYPTO: $ETH) exchange-traded funds (ETFs).
In recent days, Ethereum ETFs have recorded their biggest net outflows since July of this year, with over $79 million U.S. exiting on Sept. 23.
Analysts blame the outflows on waning demand among institutional investors who prefer rival %Bitcoin (CRYPTO: $BTC) ETFs.
Capital allocations to Ethereum ETFs have been steadily declining since they made their market debut in the U.S. on July 23 of this year following regulatory approval.
The latest outflows are particularly disappointing coming as they do amid a broad rally in cryptocurrencies that has been sparked by the U.S. Federal Reserve lowering interest rates.
While Ethereum’s price has gained 11% since the Fed reduced rates by 50-basis points on Sept. 18, outflows from the ETFs have continued to accelerate.
Crypto observers say the growing disconnect between Ethereum’s price and ETF flows indicates that investors are uncertain about the asset’s long-term growth potential.
However, even though Ethereum’s price is marching higher currently, the second largest %Cryptocurrency by market capitalization hasn’t reached a fresh all-time high since autumn 2021, which is the last time the market peaked.
Bitcoin, in contrast, hit an all-time high of just under $74,000 U.S. in March of this year.
And even with the current advance, Ethereum’s price remains flat (up 0.19%) on the year at $2,357.76 U.S.
COMTEX_458115962/2797/2024-09-24T10:10:58