Average Ethereum ETF investor ‘substantially underwater’ — Glassnode

Most investors successful spot Ether exchange-traded funds from plus managers BlackRock and Fidelity Investments are facing important losses, according to crypto analytics steadfast Glassnode.

“The mean capitalist successful the BlackRock and Fidelity Ethereum ETFs are present substantially underwater connected their position, holding an unrealized nonaccomplishment of astir -21% connected average,” Glassnode said successful its May 29 report.

Ether (ETH) is presently trading astatine $2,601, according to CoinMarketCap data. However, BlackRock’s spot Ether ETF has a outgo ground of $3,300, portion Fidelity’s is higher astatine $3,500. 

Funds dropped connected Trump tariffs

The past clip Ether was trading supra $3,000 was Feb. 2, earlier entering a downtrend aft US President Donald Trump signed an enforcement bid to enforce import tariffs connected goods from China, Canada, and Mexico.

Ether is up 45.14% implicit the past 30 days. Source: CoinMarketCap

“We tin spot that nett outflows statesman to accelerate erstwhile the spot terms dropped beneath this mean ETF capitalist cost-basis level successful August 2024 and January and March of 2025,” the steadfast added.

Ether deed its yearly debased of $1,472 connected April 9, the aforesaid time Trump’s sweeping planetary tariffs came into effect. However, Ether has climbed 44.25% implicit the past month, and spot Ether ETFs person recorded 9 consecutive days of inflows totaling $435.6 cardinal since May 16, arsenic the commercialized warfare uncertainty has begun to chill down. 

Some analysts expect much uptrend for the crypto marketplace aft a US national tribunal blocked astir of Trump’s tariffs connected May 28.

US spot Ether ETFs past clocked a nett outflow time connected May 15. Source: Farside

Since spot Ether ETFs launched successful the US successful July 2024, they person recorded $2.94 cardinal successful full inflows. On their July 23 launch, Ether was trading astatine astir $3,536.

Meanwhile, Glassnode suggested the ETFs person had small interaction connected Ether’s spot price. “The Ethereum ETFs initially accounted for conscionable ±1.5% of the commercialized measurement successful spot markets, suggesting a comparatively lukewarm reception connected launch,” it said.

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Glassnode said the ETFs experienced a play of stronger maturation successful November 2024, wherever the measurement accrued to implicit 2.5%.

This coincided with Trump winning the US statesmanlike predetermination during the aforesaid month, the full crypto marketplace entered a month-long rally that saw Ether scope $4,007 connected Dec. 8.

The measurement has since declined backmost toward 1.5%, Glassnode said.

On March 20 astatine the Digital Asset Summit, BlackRock’s caput of integer assets, Robbie Mitchnick, noted that the spot Ether ETF is “less perfect” without staking.

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