Although Ethereum has recently shown signs of recovery, a significant portion of investors in spot Ethereum ETFs launched by asset management giants BlackRock and Fidelity are still facing considerable unrealized losses. This insight comes from a newly released analysis by blockchain intelligence platform Glassnode.
According to the report, the typical investor in these Ethereum ETFs is currently experiencing an average decline of about 21%, underscoring the persistent risks and instability associated with institutional exposure to cryptocurrencies.
“Participants in the BlackRock and Fidelity Ethereum ETF offerings are, on average, sitting on unrealized losses of roughly -21%,” Glassnode reported on May 29, further emphasizing the hurdles large investors continue to face in the crypto market.
As of now, Ethereum is priced at approximately $2,601, according to CoinMarketCap. In contrast, the average entry point for investors in BlackRock’s Ethereum ETF is around $3,300, while Fidelity’s stands even higher at $3,500. This considerable gap between acquisition cost and present market value has resulted in notable unrealized losses for holders.
Since the 2nd of February, Ethereum has not successfully surpassed the $3,000 level. The decline in price followed an executive order by U.S. President Donald Trump that imposed significant import tariffs on products from countries including China, Mexico, and Canada—an economic move that added pressure to broader markets, including crypto.
Glassnode highlights that periods of heightened ETF withdrawals closely aligned with Ethereum falling below the average entry price for ETF holders—most notably in August 2024, as well as January and March 2025. The digital asset hit its lowest point of the year at $1,472 on April 9, coinciding precisely with the global enforcement of President Trump’s aggressive tariff measures.
Despite these setbacks, Ethereum has shown a strong rebound, climbing by 44.25% over the past month. This surge has rekindled institutional enthusiasm, with spot Ether ETFs registering nine consecutive days of capital inflows since May 16—amounting to a total of $435.6 million. The trend reflects growing investor confidence as the market begins to stabilize amid easing tariff-related tensions.
On May 28, a U.S. The majority of the tariffs that President Trump had proposed were rejected by a federal court, which prompted experts to believe that Ethereum and the cryptocurrency industry as a whole would see fresh upward momentum. Should this bullish trend continue, it may help offset the current losses faced by ETF investors.
Since debuting in the U.S. market in July 2024, spot Ethereum ETFs have accumulated a combined $2.94 billion in inflows. At the time of launch, Ethereum was trading at $3,536, reaching a high of $4,007 during a December surge sparked by Trump’s election win, before eventually declining.
Despite strong investor interest, Glassnode observed that these ETFs have had only a modest effect on Ethereum’s spot market. Initially representing about 1.5% of total trading volume, their impact peaked at 2.5% in November 2024 before slipping back to roughly 1.5% in recent weeks.
Speaking at the Digital Asset Summit on March 20, Robbie Mitchnick, BlackRock’s Head of Digital Assets, acknowledged the product’s shortcomings, stating that Ethereum ETFs are “less than ideal” in the absence of staking capabilities — a core distinction from Bitcoin and a critical feature for long-term ETH investors seeking yield.
As the crypto community watches regulatory developments around staking integration in ETF structures, investor hesitation may persist until more robust offerings are introduced.
Originally published by CryptosNewss.com under the title “Ethereum ETF Investors Face 21% Average Loss, Glassnode Reveals in Stark Report”
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