Ethereum ETF ‘Diamond Hands’ Face Their Harshest Test At $2,000

1 month ago

Ethereum ETF investors are sitting connected a acold uglier introduction constituent than their bitcoin counterparts, according to Bloomberg Intelligence expert James Seyffart, with spot ETH funds present absorbing a drawdown that has near galore buyers heavy underwater.

“Ethereum ETF holders are sitting successful a worse presumption than their Bitcoin ETF brethren,” Seyffart wrote connected X precocious Tuesday. “The existent ETH terms of $2,000 is mode beneath their mean outgo ground of ETF holders astatine astir ~$3,500. It’s a achy proposition. But it’s 1 that Eth ETF holders person experienced already.”

Seyffart added that the astir caller ETH ETF trough pushed the drawdown “beyond 60%,” astir matching the percent diminution ETH saw astatine its April 2025 low, framing the determination arsenic terrible but not unprecedented for ether’s capitalist base.

Even so, helium argued the capitalist effect has been much stoic than the terms enactment implies. “Still, the immense bulk of buyers person stayed put,” helium wrote, pointing to nett inflows crossed the ETH ETF analyzable falling from astir $15 cardinal to beneath $12 cardinal — a materially larger deterioration than bitcoin ETFs “on a comparative basis,” but, successful his words, “still reasonably decent diamond hands successful expansive strategy (for now).”

Fresh travel information suggests the bleeding has slowed, but not flipped decisively. SoSoValue information shows US spot ether ETFs took successful astir $13.82 cardinal successful nett inflows connected Feb. 10. That followed a week of nett redemptions totaling astir $166 million, extending a multi-week outflow streak.

On a monthly basis, SoSoValue figures peg past month’s nett travel astatine astir $350 cardinal successful outflows. Cumulatively, full nett assets are astatine $11.76 cardinal arsenic of Feb.10.

Goldman Sachs Is Bullish On Ethereum

Against that backdrop, Goldman Sachs’ latest 13F disclosure added a antithetic benignant of signal: accepted finance’s vulnerability is progressively visible, and not confined to bitcoin. On Tuesday, Goldman disclosed astir $2.36 cardinal successful crypto-related positions, including astir $1.06 cardinal tied to spot bitcoin ETFs and astir $1.0 cardinal to spot ether ETFs, alongside smaller exposures of astir $153 cardinal successful XRP and $108 cardinal successful Solana — a astir 0.33% allocation successful the discourse of its broader holdings.

The reactions connected X leaned into the optics. Binance laminitis Changpeng “CZ” Zhao framed the filing arsenic a positioning spread betwixt crypto natives and banks: “Crypto is astir apt the lone spot you had an earlier commencement than the banks. But if you sold your crypto past quarter, portion the banks are buying, then…”

MoonRock Capital laminitis Simon Dedic focused connected the ETH sizing itself: “Very absorbing to spot them holding astir arsenic overmuch ETH arsenic Bitcoin. For a blimpish concern slope that typically sticks to modular portfolio structures similar marketplace headdress weighting, this speaks volumes connected however they’re importantly much bullish connected Ethereum than Bitcoin, which would usually beryllium 4–6x larger successful specified portfolios. This is the institutional supercycle, and ETH is intelligibly the organization darling.”

At property time, ETH traded astatine $1,949.