Trading volume of ETF based on Ethereum futures after listing stood at just 0.2% of the benchmark for Bitcoin-based equivalents in 2021, according to analysts at K33 Research.
AUM under management of Ethereum-based products stood at only $8.5 million, versus $576.5 million for Bitcoin-based products.
Analysts suggested redirecting capital from the second-largest cryptocurrency by market capitalization to the first.
“We believe the time has come to revert to Bitcoin. We no longer see strong grounds for ETH/BTC to rise in the short term,” they said.
Total turnover across six ETFs based solely on Ethereum futures for the day amounted to $1.92 million, including $879 000 for the ProShares Ether Strategy ETF.
According to K33 Research, traders on the CME expected a stronger debut. Premiums on Ethereum futures rose before the ETF launch, but quickly retraced after lacklustre results.
Analysts say the situation more closely mirrors the CME’s 2017 Bitcoin futures debut. The instruments took years to gain traction among institutional investors.
K33 Research acknowledged that the appeal of Ethereum ETFs could evolve over time.
“Although liquidity on the other side was not forthcoming, the situation could quickly change as market sentiment improves overall,” they said.
Analysts did not rule out a correction in October, though the picture remains mixed at present.
“While funding rates below neutral suggest bearish sentiment in the futures market, option prices tilt toward bullish, indicating higher demand for calls than for puts,” — they said.
Earlier, experts from QCP Capital put forward four arguments in favor of a Bitcoin price returning to $25 000.
Bitfinexnoted high odds of further upside for the price of digital gold.