QCP Capital recently highlighted the traditional financial community's lack of understanding of Ethereum (ETH), noting similarities between the initial trading patterns of spot ETH ETFs and BTC spot ETFs. The first week of trading saw ETH prices drop from $3,563 to $3,086. Analysts suggest that ETH's abstract nature compared to BTC's clear 'digital gold' image may be challenging for traditional finance to grasp. Additionally, the lack of a staking option in ETH spot ETFs is seen as reducing their appeal, leading to significant outflows, including a $1.16 billion net outflow from Grayscale ETHE in just four days.

BlockBeats news, on July 27, QCP Capital posted on its official channel that the first week of spot ETH ETF trading looked familiar to the launch of the BTC spot ETF, with ETH retreating from a high of $3,563 to a low of $3,086. Grayscale ETHE's 2.5% fee once again drove outflows. So far, the net outflow of 8 ETFs is $178 million, of which ETHE has seen a net outflow of $1.16 billion in just 4 days. Analysts say that unlike BTC's digital gold positioning, ETH may be a rather abstract concept for the traditional financial world, and it will take time to further absorb it. And investors have less motivation to buy spot ETH ETFs without a pledge function.

QCP Capital Critiques Spot ETH ETFs for Lack of Understanding and Appeal in Traditional Finance