Net outflows of Spot Ether ETF reached $0.5 million on September 11, 2024. Numbers from Fidelity and VanEck made their way into the books. While FETH banked an inflow of $1.2 million, ETHV banked an outflow worth $1.7 million. Thereby, delivering a negative in total. The historical cumulative net outflow stands at $562.8 million as of the same date. The net asset value is $6.42 billion, and the net asset ratio is 2.27%.
That said, the value of Ethereum tokens has surged by 1.67% in the last 24 hours. At the time of writing this article, Ether was exchanging hands for $2,366.21. It further reflects a decline of 1.68% in the last 7 days and a fall of 11.68% in the last 30 days. There is a long way for ETH to go before it successfully instills a sense of confidence among investors.
Reports indicate that the demand for the Spot Ether ETF is relatively sluggish. A report made its way to the market on September 5, 2024, stating that no new or fresh capital has been injected into the ETH-linked ETF product. Fees charged by issuers are starting to annoy investors. Previously, this was not a significant issue; however, in recent times, the trend has shifted. Most of them have kept their fees at 0.25%. Only Grayscale’s ETHE rides the highest percentage of 2.50%. Grayscale ETH has the lowest fee in the market, at 0.15%.
The staking mechanism is another factor believed to be affecting the flows into Spot Ether ETF. It is an integral part of the Ethereum ecosystem, but the US SEC’s stance has discouraged issuers from making it a fundamental offering with their products. All the products have gone live without the said functionality. As a result, investors’ interest has diminished right now.
The inability to stake holdings is driving investors away since they cannot claim their staking rewards. Needless to say, regards form a crucial part of keeping the community active and engaged.
Staking could make a comeback, given investor sentiments. Nate Geraci, the president of ETF Store, said that it was only a matter of when and not if. It is based on the assumption that the market and regulatory authorities are evolving with time. Evolution, at any pace, aims to bring changes or modifications to the existing mechanism. Relevant authorities will eventually respect the sentiments of investors.
The debate between Donald Trump and Kamala Harris has settled the dust on Spot Ether ETF and Ethereum tokens. For a while, the market hesitated, assuming that Trump had lost the first round. A correction has made its mark, with tokens once again rising in terms of trading value. It remains to be seen how Spot Ether ETFs react to the rate cut announcement by the Federal Reserve.