Following a significant market crash that caused Ethereum to tumble 23% in less than 24 hours, U.S. spot Ethereum ETFs experienced a positive day of inflows. On August 5th, the total inflow for the nine newly launched spot ETH ETFs was $49 million, marking its second-highest inflow day since their introduction. This surge suggests that institutional investors seized the opportunity to buy into Ethereum at a discounted price.
Among the spot ETH ETFs, BlackRock’s ETHA fund led the way with an impressive inflow of $47.1 million, totaling up to $760 million in funds invested. VanEck’s ETHV fund followed closely behind with an inflow of $16.6 million, along with Fidelity’s FETH at $16.1 million. Additionally, Bitwise’s ETHW fund saw an inflow of $7.2 million, while Grayscale’s Ethereum Mini Trust (ETH) received $7.6 million in investments.
Although Ethereum ETFs experienced a surge in inflows, Bitcoin funds did not receive the same level of interest. Preliminary data from Farside Investors indicated that Bitcoin funds, including those from Fidelity, Ark 21Shares, and Grayscale, saw outflows ranging from $58 to $70 million. Notably, Grayscale’s Mini Bitcoin Trust experienced a minor inflow of $21.8 million, while Bitwise and VanEck received around $3 million each.
The sharp decline in ETH prices on August 5th, where the asset hit its lowest price since 2024 at $2,171, underscored the extreme volatility in cryptocurrency markets. However, Ethereum showed signs of recovery during the Asian trading session on Tuesday, bouncing back to $2,500. To sustain this upward trend, Ethereum must surpass the resistance level at $2,900, which might be a challenging task, especially if Bitcoin’s recovery remains sluggish.
The recent surge in inflows for U.S. spot Ethereum ETFs following a market crash highlights the resilience of institutional investors towards buying the dip. While Ethereum’s rapid recovery is promising, the cryptocurrency market remains turbulent and unpredictable, requiring investors to exercise caution and vigilance in their trading decisions.
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