TL;DR
The ETH ETFs launched on Tuesday, seeing a net-inflow of $107M, and ETH’s value stayed flat — however worth accrual takes time, two days ain’t sufficient to show something.
Full Story
So the Ethereum ETFs launched on Tuesday, seeing a net-inflow of $107M, and ETH’s value…stayed flat?
We have now two trains of thought on this:
Each begin right here:
Ethereum is a $410B asset — $107M of ETF inflows isn’t going to right away drive the value to new all-time highs.
It’s gonna take time, and every day of ETF inflows will probably be offset by the promote stress coming from the broader market.
Cynical thought:
Sure, however…possibly buyers don’t fairly know how you can value Ethereum?
There are thirty 9 layer 2 (L2) initiatives that combine with Ethereum, every with their very own token (and every incentivizing customers/buyers to purchase/transact with their native token, as a substitute of ETH).
These L2’s pay hire to Ethereum, but it surely’s low.
(E.g. On June 1st, Base generated $94,357 in charges, and paid $900.04 to Ethereum — or roughly 0.95%)
From a sure angle, it would seem like worth accrual is being pulled away from the ETH token, and into a spread of L2 tokens.
…so why purchase the ETH ETF if the Ether token is having its worth leeched away?
Logical thought:
It’s WAY too early to guage climate the above principle is a) legitimate, and b) the reason for ETH’s flat value.
We’re solely two days in, and there are a number of elements outdoors of the ETFs that have an effect on Ethereum’s value day-to-day.
Plus, constructing an L2 on Ethereum means benefiting from the community’s hundreds of thousands of customers from day one.
…and all it’s a must to pay to Ethereum is 0.95% of your community charges??
That’s a cut price! And it’ll possible appeal to an entire bunch of recent builders, who will probably be paying an increasing number of charges again to Ethereum as their initiatives develop.
(Smaller piece of a bigger pie n’ all that).
The takeaway:
We’re all going to must hurry up and wait to see how the ETFs will have an effect on Ethereum.
