Ethereum (ETH) exchange-traded funds (ETFs) have struggled since their launch in July 2024, recording $610 million in net outflows, while Bitcoin ETFs faced $330 million in net outflows during the same period.
The world’s second-biggest cryptocurrency has consistently underperformed Bitcoin since these launches, with its share of the global crypto market cap steadily declining.
Meanwhile, Layer 1 Ethereum activity remains subdued, even as Layer 2 usage has risen significantly. According to Citi analysts, this trend may shift in the wake of the risk-friendly stance taken by the Federal Open Market Committee (FOMC) in September.
“Should the broad risk-on market environment continue, crypto and ETH may be supported and potentially reverse the net ETF outflows,” Citi analysts said in a note, though this would require improved activity on the Ethereum network.
The dovish FOMC decision appears to have halted ETH’s decline relative to BTC, as the ratio…
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