Ethereum ETFs’ changing landscape – Monochrome, VanEck, and more outflows

• Spot ETH ETFs had netflows of -$91 million for the week.
• The ETH ETF volume has not picked up, compared to the BTC ETF

Ethereum has seen notable events surrounding its ETFs this week. One major asset management company announced discontinuing one of its Ethereum-based features. At the same time, another firm filed for a new spot Ethereum ETF.

These developments happened during a week in which Spot ETH ETFs saw almost no inflows, further contributing to the mixed sentiment around ETH.

New Ethereum ETF feature in Australia

Earlier this week, Australian asset manager Monochrome Asset Management announced that it has applied to list the Monochrome Ethereum ETF (Ticker: IETH) on Cboe Australia. The announcement highlighted that the asset manager plans to hold ETH passively, making it the first ETF in Australia to do so. This move marks Monochrome’s continued expansion into the cryptocurrency ETF space, following the launch of its BTC ETF in June 2024.

While Monochrome is advancing its Ethereum ETF, VanEck, another major asset management firm, announced it is shutting down one of its ETH ETF features.

VanEck to shut down Ethereum Futures ETF

In a 6 September announcement, VanEck revealed that its board has approved the liquidation of its VanEck Ethereum Strategy ETF (EFUT) – A Futures-based Ethereum ETF. 

The decision to liquidate the fund was attributed to insufficient demand. It stated that traders showed a preference for spot ETFs over Futures offerings. According to the statement, shares of the EFUT will cease trading on 16 September. Also, the fund’s assets will be liquidated and returned to investors on or around 23 September.

The contrasting moves by Monochrome and VanEck highlight the growing popularity of spot ETFs in the cryptocurrency market. Monochrome’s spot Ethereum ETF (IETH) launch aligns with this trend. At the same time, VanEck’s decision to wind down its Futures ETF reflects the decreasing appeal of Futures products in favor of direct exposure through spot ETFs.

However, despite the apparent preference for spot ETFs, the overall trend for these products has been marked by outflows over the past week.

Spot ETH ETF records consecutive outflows

According to analysis of data from SoSoValue, Spot Ethereum ETFs registered consecutive outflows across most exchanges over the past week. By the close of trade on 6 September, the outflows amounted to approximately $6 million, bringing the total netflows for the week to $-91 million. 

Source: SoSoValue

– Read Ethereum (ETH) Price Prediction 2024-25

Additionally, the total netflows for spot ETH ETFs now stand at approximately $-568.30 million, signaling a persistent trend of investor withdrawals.

What this means is that market conditions have been driving investors to pull back on their ETH positions in recent weeks.