ETH Futures Premiums Suggest That Ethereum Investors Have Little Confidence in the Spot Ethereum ETFs, Despite Their Imminent Launch

This development comes amid the imminent launch of these funds, which are expected to begin trading next week.

Cryptocurrency derivatives platform Laevitas showed on Monday that annualized premium for fixed-month Ethereum contracts stood at 11% – a level that crypto traders might find surprising given the imminent launch of Spot Ethereum ETFs.

This indicator, which tracks the premium paid on futures contracts over spot prices on a annualized basis, has not crossed 12% over the past month, according to data from Laevitas.

These ETFs, which are expected to begin trading next week, are largely anticipated to infuse bullish momentum into ETH's price. Some crypto analysts, such as pseudonym Linda, have predicted that ETH could reach as high as $4,000 on the back of these funds' anticipated inflows.

However, crypto traders appear to be skeptical about the possibility of such a rapid price increase for Ethereum.

One possible explanation for this lack of extreme bullishness is that Ethereum's price may continue to trade sideways due to the $110 million daily outflows that research firm Kaiko projects could flow from Grayscale's Spot Ethereum ETF.

This development comes after the final S-1 filings by the Spot Ethereum ETF issuers, which indicate that Grayscale has the highest fees. With a management fee of 2.50%, Grayscale's fee surpasses the maximum of 0.25% charged by other Spot Ethereum ETF issuers.

In a related move with its Spot Bitcoin ETF, Grayscale charged a management fee of 1.5%, compared to 0.19% to 0.39% for other Spot Bitcoin ETF issuers. This strategy is believed to have contributed to the significant outflows from Grayscale's Bitcoin ETF after the launch of Spot Bitcoin ETFs.

Crypto analyst Leon Waidmann presented a bullish case for ETH's price, arguing that Ethereum investors should be more bullish. He highlighted that the discount between Grayscale's Ethereum Trust (ETHE) and ETH's price has narrowed significantly since the approval of Spot Ethereum ETFs in early May.

According to Waidmann, this provided ETHE investors with ample time to exit their positions at a discount compared to Grayscale's Bitcoin Trust (GBTC). Investors were able to capitalize on this discount due to the delayed launch of Spot Ethereum ETFs after their approval.

Another factor believed to have driven outflows from GBTC is investors booking profits from investments made in the trust at a discount to Bitcoin's spot price. However, unlike GBTC and other Spot Bitcoin ETFs, ETHE and other Spot Ethereum ETFs did not begin trading immediately after being approved.

As a result, Waidmann suggests that anyone planning to profit from the discount between ETHE and ETH's price would have likely done so by now. This suggests that Grayscale's ETHE is unlikely to experience the same level of profit-taking as Grayscale's GBTC experienced after it began trading.

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