Asset management giant Fidelity takes advantage of rival BlackRock in the Ethereum ETF race, with inflows reaching $5 million. This remarkable performance comes after a two-day period without notable activity, demonstrating a significant renewed interest from institutional investors in the second largest crypto.
A tight battle between the giants of traditional finance
According to the latest data from Farside Investors, Fidelity took a decisive lead on October 28 with its Ethereum ETF (FETH), surpassing BlackRock by $2.7 million in daily inflows. This performance comes after two days of pause in capital inflows, demonstrating the resilience of the appeal of the Fidelity product among institutional investors.
There Fidelity dominance comes in a context where the majority of Ethereum ETF issuers are struggling to attract capital. Major players like Bitwise (ETHW), 21Shares (CETH), VanEck (ETHV), and Invesco (QETH) have not seen any significant activity for three consecutive days.
Even more worrying, Grayscale, long considered a pioneer of the sector, is facing massive capital outflows, losing $8.4 million after a previous hemorrhage of $19.2 million. Analysts point to high management fees as the main factor in this disaffection.
An Ethereum ETF market under pressure despite rising prices
The entire Ethereum ETF sector is in negative territory with a net outflow of $1.1 million, mainly due to massive withdrawals from Grayscale. This trend contrasts with the performance of Ethereum on the spot market, where the crypto appreciated by 4.12% to reach $2,629.70, driven by a trading volume up 48.48% to 21, 42 billion dollars.
The relative stability of Fidelity since October 10, alternating between moderate inflows and zero flows, testifies to a strategy which seems to be bearing fruit in the face of struggling competition. This dynamic suggests a gradual consolidation of its dominant position in the Ethereum ETF market.
Fidelity's success illustrates the growing maturity of the crypto ETF market, where reputation and institutional expertise play a determining role in investor choices. As the market continues to evolve, Fidelity's ability to maintain this positive momentum will be closely scrutinized by the entire industry.
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