- Ethereum has declined by 10% recently, with market dominance dropping below 13% amid broader market bearishness.
- Ethereum ETFs struggle with only four weeks of positive inflows, contrasting sharply with Bitcoin’s robust ETF performance.
In the weeks leading up to the U.S. presidential election, Ethereum (ETH) has seen a 10% decrease in value, underperforming compared to Bitcoin (BTC). Ethereum’s market dominance has declined to under 13%.
This trend is reflected in the limited inflows into Ethereum-based exchange-traded funds (ETFs), which have only seen four weeks of net positive inflows since their inception.
Data from CryptoQuant indicates a consistently negative market premium for Ethereum ETFs, suggesting that these funds have been trading at a discount. This pattern signals subdued institutional demand and a bearish sentiment towards Ethereum in the ETF sector.
Conversely, Bitcoin ETFs have experienced substantial inflows, highlighting a stark contrast in institutional confidence between the two leading cryptocurrencies.
Nate Geraci, President of ETF Store, suggests that Bitcoin ETFs’ earlier market entry may have captured significant initial interest, detracting from potential investments into Ethereum ETFs.
Additionally, significant outflows from the Grayscale Ethereum Trust, amounting to $20 billion, have negatively impacted the market perception of Ethereum ETFs.
Geraci also points to insufficient educational resources about Ethereum for advisors as a contributing factor to the tepid interest from institutions. Despite these challenges, he remains optimistic about future inflows into Ethereum ETFs, although he acknowledges that this may take time to materialize.
Several factors…
Spot btc ETFs had 1st mover advantage & stole some thunder, ETHE outflows, advisor education (eth just a more difficult concept to get head around IMO), & overall crypto market environment since launch (ETF flows tend to chase performance). https://t.co/gXNFUH0miG
— Nate Geraci (@NateGeraci) November 4, 2024
Looking forward, the outcome of the U.S. presidential election could influence Ethereum’s ETF market, particularly if Donald Trump is re-elected. Prior to the approval of Spot ETH ETFs by the U.S. Securities and Exchange Commission (SEC), proposals for staking were removed from these products.
“Think only a matter of time before spot ETH ETF inflows start picking up. Just might take a while.”
Geraci posits that the Trump administration might allow staking provisions, which could enhance the attractiveness of Ethereum ETFs.
Currently, Ethereum funding rates in the futures market have increased by 85% to 0.0119, indicating a rising bullish sentiment. This suggests that traders are anticipating regulatory changes favorable to Ethereum should Trump win the election.
Ethereum (ETH) is currently priced at $2,422.6, showing a decline of 1.38% for the day. Over the past week, it has dropped by 3.30%, while it remains up by a modest 0.35% over the past month, indicating some recent consolidation after previous gains.
The 24-hour trading volume stands at $15.13 billion, reflecting steady trading interest. Key support for ETH is around $2,400, with resistance at $2,500 – $2,600.
Technical indicators suggest a neutral to slightly bearish outlook, with the potential for further downside if support is broken.
For ETH to regain bullish momentum, a push above $2,600 is necessary, while a fall below $2,400 could lead to additional short-term weakness.
