BlackRock's Ethereum ETF attracted over $108M despite global market chaos, with net inflows across all Ethereum ETFs reaching $99M.
Ethereum ETFs saw a surge with $99M in inflows on August 6, even as Grayscale’s ETHE faced $39.7M in outflows.
Bitcoin ETF trading volumes hit $5B daily, the highest since April, signalling investor fear amid market downturns.
Despite global economic challenges this week, Ethereum ETFs have seen remarkable inflows. Leading the surge is BlackRock’s Ethereum ETF (ETHA), which on August 6, attracted over $108 million in new investments. This impressive figure came despite market chaos, including a severe 12% drop in Japan’s Nikkei and Topix indexes.
Record Inflows Amid Market Chaos
On the same day, BlackRock’s Ethereum ETF pulled in more than $57 million, even as broader market sentiment faltered. Tuesday’s net inflows across all spot Ethereum ETFs doubled to $99 million. This was a rebound despite Grayscale’s ETHE experiencing $39.7 million in outflows. Additionally, Fidelity’s Ether ETF (FETH) recorded $22 million in new investments.
ETF Store President Nate Geraci noted that BlackRock’s Ethereum ETF might secure a spot among the top 10 ETF launches of 2024, given its current momentum. BlackRock’s Bitcoin ETF (IBIT) has already achieved a top-10 ranking this year. Furthermore, Bitcoin ETF outflows are decreasing, suggesting potential positive developments.
https://twitter.com/NateGeraci/status/1820976768867823734
The public can offer comments on the proposed ETF rule change until August 27. According to Bloomberg Intelligence analyst James Seyffart, the SEC will make a decision on this idea by April 9, 2025. At the moment, two commodities exchange-traded funds (ETFs) that are organized as trusts and accessible for options trading on Nasdaq are BlackRock's iShares COMEX Gold Trust and iShares Silver Trust.
Bitcoin ETF Trading Volumes Surge
Spot Bitcoin ETFs, which launched in January and now manage over $50 billion in assets, are still waiting for SEC approval for options trading. BlackRock’s Bitcoin ETF was among the first batch of approved spot Bitcoin ETFs, beginning trading in June. Six options exchanges had requested to list options on these ETFs, but in July, the SEC asked for more time to reach a decision.
The SEC noted that options on Bitcoin ETFs could benefit investors by providing a lower-cost tool for exposure. Despite the market crash, Bitcoin ETFs have seen their trading volumes surge to $5 billion daily. This is the highest trading volume since April. Bloomberg’s senior ETF analyst, Eric Balchunas, stated that high trading volume during downturns is a strong indicator of market fear.
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