On October 2nd, six Ether Futures financial products officially began trading, each with its respective net expense ratio as follows:
- BitWise Ethereum Strategy ETF (AETH): 0.85%
- Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP): 0.85%
- ProShares Ether Strategy ETF (EETH): 0.95%
- ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE): 0.95%
- Bitcoin & Ether Market Cap Weight Strategy ETF (BETH): 0.95%
- VanEck Ethereum Strategy ETF (EFUT): 0.66%
In this context, James Butterfill, the Head of Research at CoinShares Co., reported that a total of $13 million in institutional capital flowed into Ethereum products as of October 4th. This marks the first positive week in seven weeks since the Ethereum products launched. It’s important to note that this inflow is significantly lower compared to the $200 million of institutional capital invested in Bitcoin when ProShares introduced Bitcoin Futures ETFs in 2021. This discrepancy can be explained by the current bearish market sentiment, which contrasts with the enthusiastic growth seen in the market in 2021.
However, the prolonged bear market trend still reflects in the net funds of institutional investors. CoinShares data shows that out of 39 weeks since 2022, there have been 24 weeks with negative net flows (money flowing out). As of October 4th, Ethereum alone has witnessed an outflow of $101 million Year-to-Date (YTD), whereas Bitcoin has had an inflow of $219 million within the same time frame. Nevertheless, the weekly and monthly net flows for both assets are strikingly similar, with inflows of $16.4 million and $12.9 million for BTC and ETH, respectively.
An interesting observation is that Solana (SOL) emerged as a top asset attracting institutional investor inflows in the first week of October, according to data shared by James Butterfill. A total of $22.7 million in net capital was allocated to Solana’s financial products, signifying positive interest from institutional investors in SOL.