Ethereum ETF Investors “Substantially Underwater” — Will ETH Recover?
The post Ethereum ETF Investors “Substantially Underwater” — Will ETH Recover? appeared on BitcoinEthereumNews.com.
Glassnode reports that Ethereum ETF outflows accelerated whenever Ethereum’s spot price dropped below the average cost basis. Investor sentiment has started to shift, with nine consecutive days of net inflows into Ethereum ETFs totaling $435.6 million as of May 2025. Investors in BlackRock and Fidelity’s spot Ethereum ETFs are currently sitting on 20% unrealized losses, as shown by data from Glassnode. Despite the Ethereum price gaining 46% over the past month, it is still trading below the average cost of acquisition for these ETFs. Ethereum ETF Sees Sluggish Growth Glassnode has released its latest analysis, which finds that the cost basis for BlackRock’s Ethereum ETF (ETHA) is $3,300 and Fidelity’s FETH is $3,500. “The average investor in the BlackRock and Fidelity Ethereum ETFs are now substantially underwater on their position, holding an unrealized loss of approximately -21% on average,” according to Glassnode’s report. The ETH price hasn’t been able to rise above its early February high of $3,200 since then. The altcoin came under major selling pressure soon as Trump trade tensions led to market uncertainty. Uncertainty in the markets, brought on by taxation of imports from China, Mexico, and Canada, affected all kinds of assets, including cryptocurrencies. The situation got worse after Trump introduced his tariffs on April 9, when Ethereum touched a one-year low at $1,472. When the average cost basis went below the price, significant withdrawals from Ethereum ETFs increased, per the Glassnode report. “We can see that net outflows begin to accelerate when the spot price dropped below this average ETF investor cost-basis level in August 2024 and January and March of 2025,” the firm noted. Ether ETFs Are Catching Up Recently Still, investor sentiments are starting to change. For nine days in a row starting on May 16, investors have bought more Ethereum ETFs than…
Filed under: News - @ May 31, 2025 8:27 am