Spot Ethereum ETFs record $98.4m inflows; Bitcoin ETFs shed $148.6m

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As a seasoned analyst with over two decades of experience navigating financial markets, I find the recent trends in Ethereum and Bitcoin ETFs intriguing, to say the least. The consistent inflows into Ethereum ETFs, particularly BlackRock’s ETHA fund, suggest a growing interest in the smart contract platform and its potential for future growth.

As a seasoned investor with over two decades of experience in the financial markets, I have witnessed the ebb and flow of various investment trends. This week, I’ve noticed an interesting development in the crypto space: while U.S.-listed Ethereum exchange-traded funds (ETFs) are continuing to attract investors, Bitcoin ETFs are experiencing outflows for the second day in a row.

On August 6th, data from Farside Investors showed an increase in investments for the nine-point Ethereum ETFs, with a total of $98.4 million invested, which is over twice as much as the amount invested the day before.

Most of these investments, totalling $109.9 million, were channeled into BlackRock’s ETHA Fund, surpassing the $850 million it has received in total investments. Additionally, Fidelity’s FETH fund experienced substantial inflows worth $22.5 million.

According to Farside Investors, there were investments totaling $4.7 million in the mini ETH ETFs offered by Grayscale, while Franklin Templeton’s EZET saw inflows of approximately $1 million.

Instead, it’s worth noting that Grayscale’s ETHE fund faced more withdrawals on Tuesday, amounting to $39.7 million. Since their debut in the U.S. on July 23, ETHE ETFs have experienced a total withdrawal of approximately $2.2 billion. No inflows or outflows were recorded for the other spot ETH ETFs.

On August 6th, data from SoSoValue showed that the combined daily trading volume for these Ethereum spot ETFs amounted to approximately $319.8 million. This figure was less than half of the $715.2 million traded on the previous day, August 5th, and also lower than the $438.6 million recorded on August 2nd.

On Tuesday, August 6, there were total withdrawals of $148.6 million from the 11 Bitcoin ETFs, marking a continuation of the withdrawal trend that began earlier in the week.

According to Farside Investors’ data, the Bitcoin Fund ETFs managed by Fidelity Wise Origin experienced the largest withdrawals, totaling approximately $64.5 million.

As a crypto investor, I observed significant outflows in some notable investment vehicles last week. Specifically, there were withdrawals totaling $32.2 million from the Grayscale Bitcoin Trust, $28.9 million from the ARK 21Shares Bitcoin ETF, and $23 million from Franklin Bitcoin. Other spot BTC ETFs maintained a neutral stance as the cryptocurrency market grappled with fear, uncertainty, and doubt (FUD).

Based on SoSoValue’s data, the combined daily trading volume for these Bitcoin ETFs amounted to approximately $2.20 billion on August 6th, marking a substantial decrease compared to the $5.24 billion traded on August 5th and the $2.34 billion on August 2nd.

At present, the combined worth of Bitcoin ETFs trading on the spot market is approximately $51.5 billion. Interestingly, it has been reported that digital asset investment products witnessed a withdrawal of around $528 million during the last week. This is significant as it represents the first decrease following four consecutive weeks of growth.

The recent slump can be linked to increasing apprehensions about a possible U.S. economic downturn, as well as escalating political conflicts that have led to widespread selling off of different investment assets.

Amid market uncertainties, the Bank of Japan recently raised interest rates for the first time in 17 years, primarily due to concerns about the Yen‘s diminishing value against the U.S. Dollar. This move has intensified worries among investors who prefer riskier assets, triggering a wave of selling across various markets.

Furthermore, escalating disputes in the Middle East, particularly those involving Israel and its surrounding nations, have significantly increased market apprehension. This heightened risk of additional confrontations has prompted proactive responses from the affected countries.

According to data from CoinGecko, the overall value of the cryptocurrency market experienced a slight uptick, rising approximately 2% within the last day to reach a total of around $2.02 trillion.

As an analyst, I’m observing a notable recovery in Bitcoin (BTC) from its $55,000 zone, currently trading at $57,115 at this moment. This price surge has propelled BTC’s market capitalization beyond the $1.1 trillion threshold, with a daily trading volume of approximately $46 billion. Meanwhile, Ethereum (ETH), the leading altcoin, is also experiencing a 1.2% increase, currently valued at $2,518 as I pen this down.

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2024-08-07 12:36