Ethereum (ETH) exchange-traded funds (ETFs) saw their largest outflows since July 2024, with $79.2 million leaving the market on Monday, According to to data from SoSoValue.

Ethereum ETFs Still Not Delivering Expected Results

Despite the much-anticipated and powerful launch of Ethereum ETFs in July 2024, the latest cryptocurrency-based ETFs have failed to sustain institutional interest thus far. The latest data from crypto ETF tracker SoSoValue shows that ETH ETFs recorded a daily total net outflow of $79.2 million on September 23.

Upon closer inspection, the bulk of the outflows came from Grayscale’s Ethereum Trust (ETHE), which saw $80.6 million in outflows from the fund, for a cumulative total net outflow of $2.85 billion. Meanwhile, Bitwise’s ETHW saw a net inflow of $1.3 million, bringing the cumulative total net inflow to $320.3 million.

Notably, the latest exodus of funds from Ethereum ETFs is the fourth largest outflow of funds since their inception on July 23, 2024. The total net assets (TNA) of Ethereum ETFs stand at $7.2 billion, while that of Bitcoin (BTC) ETFs stands at $57.9 billion.

The continued underperformance of Ethereum ETFs versus Bitcoin ETFs does not inspire much confidence in ETH’s future price potential. The ETH/BTC trading pair provides clarity, as the ratio is currently trading at levels last seen in April 2021. ETH has erased all of the gains it made against BTC over the past three years.

ETH’s recent underperformance against BTC is not surprising considering the latter reached a modern all-time high (ATH) of $73,737 in March 2024, while the former has yet to break through its ATH of $4,878 set in November 2021.

The ETH ETF could face challenges as speculation grows about a potential ETF launch for rival cryptocurrencies like Ripple’s XRP. Grayscale recently unveiled the first XRP fund in the U.S., paving the way for a potential XRP ETF in the future.

Analysts confident of Ethereum’s comeback

Ethereum’s challenges have not dampened the optimism shared by digital asset analysts about the second-largest cryptocurrency by market capitalization. Near the launch of the Ethereum ETFs, research firm ASXN predicted that the funds could attract monthly inflows of $800 million to $1.2 billion.

Similarly, Matt Hougan of cryptocurrency exchange Bitwise recently called Ethereum the “Microsoft of blockchains,” indicating confidence in the leading sharp contract blockchain protocol. Hougan added that ETH could reverse its uptrend in Q4 2024. ETH is trading at $2,610 at the time of publication, down 1.7% in the past 24 hours.