Ethereum ETFs Lose $455 Million as Price Drops 47% from Peak

Generated by AI AgentCoin World
Sunday, Mar 9, 2025 8:21 am ET1min read
ETH
--

Ethereum, the second-largest cryptocurrency by market capitalization, is currently facing significant challenges as demand for spot exchange-traded funds (ETFs) on Wall Street continues to decline. Over the past few weeks, Ethereum ETFs have shed a total of $455 million in assets, with $120 million lost last week following a $335 million loss the previous week. This trend has raised concerns about the cryptocurrency's future performance and investor sentiment.

The current price of Ethereum is hovering around $2,100, which is approximately 47% below its peak in December and 45% lower than its value during the same period last year. The net inflow into Ethereum ETFs stands at $2.7 billion, significantly lower than the $37 billion inflow seen in Bitcoin ETFs. This disparity suggests that investors may be losing confidence in Ethereum's ability to outperform other cryptocurrencies.

One of the key factors contributing to the weak inflow trends is Ethereum's underperformance compared to other cryptocurrencies since the beginning of 2024. Additionally, Ethereum ETFs do not offer staking options, which allow investors to generate returns by delegating their tokens to secure the network. According to StakingRewards, Ethereum yields approximately 3.25%, and over $73 billion worth of Ethereum coins have been staked. This lack of staking opportunities in ETFs may be deterring investors who are seeking higher returns.

Ethereum is also facing increased competition from other blockchain networks. Its 2025 fees stood at $202 million, which is lower than the fees generated by networks such as Jito, Uniswap, Tron, and Solana. Furthermore, Ethereum's network is under pressure from popular layer-1 blockchains like Solana and BNB, as well as layer-2 solutions like Base and Arbitrum. These competitors are offering more efficient and cost-effective alternatives, which may be attracting investors away from Ethereum.

Technical analysis of Ethereum's price chart reveals a strong downward trend over the past few months. The price has dropped from a high of $4,105 in November last year to its current level of around $2,160. The current price is slightly above the crucial support level at $2