Institutional investors bought Ethereum during its price dip, leading to inflows in spot ETFs.
BlackRock’s ETHA fund led the inflows, while Grayscale’s primary ETHE fund saw outflows.
Bitcoin funds continued to record outflows, different with the strong inflows into Ethereum ETFs.
Institutional investors reacted as Ethereum’s price recorded a fall, fuelling a rise in spot Ethereum exchange-traded fund (ETF) inflows. This bullish activity stands in contrast to Bitcoin funds, which did not show the same level of buying interest.
Institutional Investors Drive Major Inflows into Ethereum ETFs Amid Price Dip
After Ethereum’s value fall by 23% within 24 hours during a market crash, U.S. spot Ethereum ETFs saw an inflow of $49 million on August 5. This marked the second-highest day of inflows for the newly launched ETFs, highlighting strong institutional interest despite recent market changes..
This surge in inflows occurred following a week plus days where inflows were less, showing that institutional investors seized the opportunity to buy Ethereum at lower prices. James Seyffart, an ETF specialist, confirmed this sentiment on August 6, stating, “ETF investors, in aggregate, likely bought the dip on Ethereum today.”
https://twitter.com/JSeyff/status/1820624405191692779
CIO Matt Hougan acknowledged the trend, noting that while there was some dip buying for both Ethereum and Bitcoin, the majority of interest was focused on Ethereum.
https://twitter.com/Matt_Hougan/status/1820643279123230791 BlackRock’s ETHA Fund Leads ETH ETF Inflows as Grayscale’s ETHE Sees Outflows
Among the various ETFs, BlackRock’s ETHA fund led with an inflow of $47.09 million, pushing its total to $760 million. VanEck’s ETHV fund followed closely with an inflow of $16.62 million, while Fidelity’s FETH fund attracted $16.15 million as recorded by SosoValue.
Source:SosoValue
Bitwise’s ETHW fund and Grayscale’s Ethereum Mini Trust (ETH) also saw inflows of $7.2 million and $7.59 million, respectively. However, Grayscale’s primary ETHE fund recorded an outflow of $46.8 million, marking its lowest since its conversion to a spot ETF.
Following the drop, Ethereum briefly hit its lowest price in 2024 at $2,171 on August 5. However, by the morning of August 6, during the Asian trading session, the market began to recover, with Ethereum climbing back to $2,500.
Read also:
Ether ETF Outflows Ease as Grayscale Sees Reduced Activity
BlackRock's Ethereum ETF Gains 76,669 ETH Amid Grayscale's $811M Outflows
Grayscale Leads the ETH ETF On-Chain Leaderboard with 2,393,495 ETH in the Grayscale ETHE Ethereum Trust
Grayscale's GBTC Sees Positive Inflow After Prolonged Downturn
Robinhood Adds $GBTC and $ETHE to Its App
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