David Edwards
Investors in spot Ethereum exchange-traded funds (ETFs) offered by BlackRock and Fidelity Investments are currently facing significant unrealized losses, according to a recent report by crypto analytics firm Glassnode. The average investor is approximately 21% underwater, with BlackRock’s ETF having a cost basis of $3,300 and Fidelity’s at $3,500, while Ether (ETH) is trading around $2,601.
The decline in Ether’s price is attributed to various market factors, including economic policies and geopolitical tensions. Notably, the imposition of tariffs by the U.S. government earlier this year has contributed to market uncertainty, affecting investor sentiment across various asset classes, including cryptocurrencies.
Despite recent inflows into Ethereum ETFs, with nine consecutive days totaling $435.6 million since May 16, the overall impact on Ether’s spot price has been limited. Glassnode notes that these ETFs initially accounted for approximately 1.5% of the trade volume in spot markets, indicating a relatively modest influence on price dynamics.
Looking ahead, some analysts anticipate potential uptrends in the crypto market, especially following a U.S. federal court’s decision on May 28 to block most of the previously imposed tariffs, potentially easing some of the economic pressures that have weighed on investor confidence.
