Following a substantial market crash that caused Ethereum to plummet 23% in less than 24 hours, U.S. spot Ethereum ETFs experienced a surge in inflows. On August 5th, the total inflow for the nine newly introduced spot ETH ETFs amounted to $49 million. This marked the second-highest day of inflows since the funds were launched, indicating a significant interest from institutional investors in buying the Ethereum dip.
The recent influx of funds into Ethereum ETFs suggests that institutional investors were actively purchasing Ethereum during the market downturn. This notion was further supported by ETF specialist James Seyffart in a post on August 6th, where he stated, “ETF investors, in aggregate, likely bought the dip on Ethereum today.” This reveals a strategic move by institutional players to capitalize on the temporary price drop of Ethereum.
Among the U.S. spot Ethereum ETFs, BlackRock’s ETHA fund emerged as the front runner, recording an inflow of $47.1 million. This brought the total flow of funds into the product to $760 million. Following closely behind were VanEck’s ETHV fund with an inflow of $16.6 million and Fidelity’s FETH with $16.1 million. Other notable ETFs, such as Bitwise ETHW, and Grayscale’s Ethereum Mini Trust (ETH), also attracted significant inflows, demonstrating a strong interest in Ethereum among investors.
In stark contrast to Ethereum, Bitcoin funds experienced outflows amounting to $168.4 million on Monday. Fidelity, Ark 21Shares, and Grayscale all witnessed outflows ranging from $58 to $70 million. The only exception was Grayscale’s Mini Bitcoin Trust, which saw a minor inflow of $21.8 million. This indicates a divergence in investor sentiment between Ethereum and Bitcoin, with Ethereum garnering more interest during the market turbulence.
Despite the sharp decline in Ethereum prices, markets have shown signs of recovery during the Tuesday morning Asian trading session, with Ethereum reclaiming $2,500. However, for the upward trend to continue, Ethereum needs to surpass and sustain above the $2,900 resistance level. This could potentially be a challenging task, especially if Bitcoin’s recovery remains sluggish. Overall, the surge in Ethereum ETF inflows following the market crash reflects a growing confidence in the long-term potential of Ethereum among institutional investors.
