Bitcoin Continues To Be More Popular Than Ethereum

The recent introduction of spot Ethereum ETFs was expected to be revolutionary. However, investor interest seems to be skewed heavily towards Bitcoin, causing Ethereum to lag behind. During the first week of trading, ETH fell to $3,086, mirroring the Bitcoin spot ETF debut.

A significant factor for this is the 2.5% fee charged by Grayscale on their Ethereum ETF, which is deterring investors. In just four days, the eight ETFs experienced $178 million in net outflows, with Grayscale alone accounting for $1.16 billion of that total.

Lack Of Interest

Despite a new mini ETF offering a reduced fee of 0.15%, net outflows persisted, with only 10% of the original ETHE converting to ETH. Investors simply show greater interest in Bitcoin than in Ethereum as investors rushed in before the ETF launch, anticipating a significant rally. When this did not materialize, they swiftly liquidated their positions.

Unlike Bitcoin, often referred to as digital gold, Ethereum lacks a straightforward tagline that resonates with traditional finance enthusiasts. This complexity makes it harder for new investors to grasp and get excited about. Additionally, the absence of staking features in these ETFs reduces the incentive for investment. Consequently, the reception to the spot Ethereum ETFs has been tepid despite the initial hype.

BTC Still Going Strong

While Ethereum faced difficulties, Bitcoin captured attention in the options market. QCP notes that implied volatility for options expiring on July 28th reached 85, nearly double the realized volatility, highlighting the level of expectation.

Moreover, major funds are making significant bets, with some positioning for a major move following Donald Trump appearing at the Bitcoin Conference 2024 and the upcoming Federal Open Market Committee (FOMC) meeting. Additionally, crypto trader Jelle noted a large descending broadening wedge forming around previous cycle highs. Jelle believes that if Bitcoin breaks out, it could potentially surge to $85,000.