After a significant market crash that saw Ethereum plummet by 23% in less than 24 hours, U.S. spot Ethereum ETFs experienced a surge in inflows. On August 5, nine newly launched spot ETH ETFs recorded an aggregate inflow of $49 million. This marked the second-highest inflow day since the funds began trading, indicating a strong interest from institutional investors in buying the Ethereum dip.
Among the spot Ethereum ETFs, BlackRock’s ETHA fund led the pack with an inflow of $47.1 million, bringing its total fund flow to $760 million. VanEck’s ETHV fund followed closely behind with an inflow of $16.6 million, while Fidelity’s FETH saw an inflow of $16.1 million. Other funds like Bitwise ETHW and Grayscale’s Ethereum Mini Trust (ETH) also received significant inflows, signaling a positive sentiment towards Ethereum in the market.
Interestingly, while Ethereum funds saw a surge in inflows amidst the market crash, Bitcoin funds experienced outflows. Preliminary data from Farside Investors indicated an outflow of $168.4 million from Bitcoin funds on Monday. Fidelity, Ark 21Shares, and Grayscale were among the funds that saw outflows ranging from $58 to $70 million, with only Grayscale’s Mini Bitcoin Trust recording a minor inflow of $21.8 million.
Following the steep decline in Ethereum prices, the market has shown signs of recovery during the Tuesday morning Asian trading session. Ethereum managed to reclaim $2,500, indicating a potential uptrend. However, for the uptrend to continue, Ethereum needs to reach and break resistance at $2,900. The recovery process may take some time, especially if Bitcoin continues to struggle in its recovery.
Overall, the rise of Ethereum ETFs and the influx of institutional investments following the market crash highlight the growing interest in digital assets like Ethereum. As market conditions continue to evolve, it will be interesting to see how ETFs and investors navigate the ever-changing landscape of cryptocurrency investments.
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