Bitstamp Exec Says Ethereum ETFs Would Have Performed Better If Launched in January

Bobby Zagotta, Bitstamp CEO for the Americas and Global Commercial Chief, has weighed in on the trend of US spot Ethereum ETFs.

Zagotta noted that the Ether ETFs would have performed better if they launched simultaneously with Bitcoin ETFs in January.

The executive said Ethereum ETFs underperformed because they emerged in July, during a burdened period for risk assets. He believes there will be a positive overturn in the digital asset space, especially for the ETFs, before the year ends.

Spot Ethereum ETFs Launch Period Undermines Their Performance, Says Exec

The US spot Ethereum exchange-traded funds (ETFs) have indicated a slower adoption rate than Bitcoin ETFs. In an exclusive discussion with Cointelegraph at TOKEN2049 in Singapore, Bitstamp executive Bobby Zagotta related ETH ETFs' slower growth rate to their launch period.

The executive acknowledged that Ether ETFs have performed below the expectations of many within the industry. However, he thinks that the timing of the products impacted their trend.

According to Zagotta, Ether ETFs would have reflected better performance if launched in January. He noted that the products emerged into the ETF market during high uncertainty for risk assets.

Further, the executive highlighted several macro factors and uncertainties driving digital assets performance.

Zagotta stated: Crypto is behaving like any other risk asset right now, which is a testament to the maturity of this market versus a year ago, even two years ago."

The Performance Trend of Bitcoin ETFs and Ether ETFs

US spot Ethereum ETFs have failed to attract robust institutional adoption, leading to an underwhelming performance compared to Bitcoin ETFs

From their launch on July 23 to September 17, 2024, ETH ETFs have traded for 40 days, with only 10 net positive flows. According to data from Farside Investors, theproducts have recorded net outflows of $605.9 billion as of September 17.

Meanwhile, most of the outflows for ETH ETFs come from Grayscale's Ethereum ETF, ETHE, which has recorded $2.75 billion in net outflows.

Conversely, spot Bitcoin ETFs have reflected a more positive trend since their launch on January 10, 2024. As of September 17, the BTC ETFs had amassed over $17.5 billion in net inflows.

Zagotta believes that Bitcoin ETFs' first mover advantage accounts for their higher adoption growth over that of Ether ETFs. He said many investors are still watching the ETH ETF market before investing.

The Bitstamp exec noted how several macro events seem to determine and influence the progress of the ETFs amid the volatility in the broader crypto market.

The CEO said: The [Ether] ETFs just launched at kind of a, call it a burdened moment, or the markets in general for risk assets. At this moment, people are waiting. I think they're in the wait-and-see mode because of the uncertainty in the election, the regulatory stuff in the US, some of the sociopolitical stuff - everything is a little bit flat right now, relatively speaking."

While acknowledging their underperformance, Zagotta remained optimistic that ETH ETFs will soon record a positive turn before the end of the year.

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