Following 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, aggregate inflows for the nine newly introduced spot ETH ETFs totaled $49 million, marking the second-highest inflow day since their launch. This demonstrates a strong interest from institutional investors, as it was only the fourth day of inflows in the past ten days of trading. ETF specialist James Seyffart further validated this notion by stating that “ETF investors, in aggregate, likely bought the dip on Ethereum today.”
Among the Ethereum ETFs, BlackRock’s ETHA fund led the pack with an inflow of $47.1 million, bringing its total funds to $760 million. VanEck’s ETHV fund followed closely behind with an inflow of $16.6 million, while Fidelity’s FETH garnered $16.1 million. The Bitwise ETHW fund received $7.2 million in inflows, whereas Grayscale’s Ethereum Mini Trust (ETH) saw $7.6 million flowing in. Despite this positive trend, the main Grayscale ETHE fund experienced an outflow of $46.8 million, marking its lowest since becoming a spot ETF.
Bitcoin Fund Outflows
In contrast to the Ethereum ETFs, Bitcoin funds saw a significant outflow of $168.4 million on Monday. Fidelity, Ark 21Shares, and Grayscale all recorded outflows ranging from $58 to $70 million, with BlackRock and four others registering zero flows. Grayscale’s Mini Bitcoin Trust received a minor inflow of $21.8 million, while Bitwise (BITB) and VanEck (HODL) each received around $3 million. Bitwise CIO Matt Hougan acknowledged dip buying in both their funds but emphasized that Ethereum garnered more interest from investors compared to Bitcoin.
The Ethereum market experienced a significant downturn, with prices hitting a low of $2,171 on August 5, the lowest since 2024. This sharp decline, which amounted to a 34% drop in less than a week, was the steepest and fastest since May 2022. However, signs of recovery emerged during the Tuesday morning Asian trading session, with ETH reclaiming $2,500. To sustain this upward momentum, Ethereum needs to surpass and break through the resistance level of $2,900. The recovery process may be gradual, particularly if Bitcoin also exhibits a slow rebound.
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