TLDR
- Spot Ethereum ETFs in the US saw $48.8 million in net inflows on August 5, 2024
- This was the second-largest daily inflow since the ETFs launched on July 23, 2024
- The inflows occurred despite a major sell-off in global stock markets
- Bitcoin ETFs saw $168.4 million in net outflows on the same day
- The crypto market rebounded, with Bitcoin reaching $55,950 and Ethereum $2,552
Spot Ethereum exchange-traded funds (ETFs) in the United States recorded significant inflows on Monday, August 5, 2024, even as global stock markets experienced a major sell-off.
According to data from Farside Investors and SoSoValue, Ethereum ETFs saw net inflows of $48.8 million, marking their second-largest daily inflow since launching on July 23, 2024.
The inflows came on a day when major stock indices tumbled. The Dow Jones Industrial Average fell 2.6%, the S&P 500 dropped 3%, and the Nasdaq Composite declined 3.43%, marking their worst day since September 2022.
Japan’s Nikkei 225 index also plummeted by over 12%, its largest single-day drop since 1987.
BlackRock’s ETHA fund led the Ethereum ETF inflows with $47.1 million, pushing its total inflows past the $750 million mark.
VanEck’s ETHV and Fidelity’s FETH funds also saw double-digit inflows of $16.6 million and $16.2 million, respectively. Smaller inflows were recorded by Grayscale’s mini ETH ETFs, Bitwise’s ETHW, and Franklin Templeton’s EZET fund.
However, Grayscale’s ETHE fund continued to see outflows, with $46.8 million leaving the fund on August 5. Since the launch of Ethereum ETFs in the US, ETHE has registered $2.16 billion in outflows.
In contrast to Ethereum ETFs, spot Bitcoin ETFs recorded $168.4 million in net outflows on the same day. The Grayscale Bitcoin Trust (GBTC), ARK 21Shares Bitcoin ETF (ARKB), and Fidelity Wise Origin Bitcoin Fund (FBTC) saw the largest outflows at $69.1 million, $69 million, and $58 million, respectively.
Despite the mixed ETF performance, the broader cryptocurrency market showed signs of recovery. The global crypto market capitalization increased by 8.6% over 24 hours, reaching $2.07 trillion.
Bitcoin rebounded from the $49,000 range to trade at $55,950, while Ethereum surged 14.4% to regain the $2,500 support level, trading at $2,552.
Pav Hundal, lead market analyst at crypto exchange Swyftx, commented on the ETF inflows, saying, “ETFs are going to become an increasingly important bellwether for the health of the crypto market.”
He noted the contrast between the broader market sell-off and the calm buying of Ethereum by ETF investors with long-term strategies.
Despite the positive daily performance of Ethereum ETFs, their cumulative total net inflow remains negative at -$461.98 million, reflecting significant outflows in previous weeks.
All Ethereum ETFs except Grayscale’s have recorded positive daily and cumulative net inflows since their launch two weeks ago.
The performance of crypto ETFs amid market volatility has drawn attention from analysts. Hundal suggested that continued strong or steady inflows could indicate that “smart money” expects the market correction to be short-lived, while sustained outflows or inactivity might signal more significant market issues.
As of August 6, 2024, Ethereum was trading at $2,552, having rebounded over 10% from the previous day’s sell-off.
