Author: Matthew Nay, Research Analyst at Messari Protocol Services; Translated by: 0xjs@Golden Finance

The Bitcoin ETF will take effect on January 11, 2024, and the Ethereum ETF will take effect on July 23, 2024.

Let’s take a look at the performance of fund inflows since then and compare it to the price action during these periods.

akU1GfmBu9nSGtiZQLHrHJraiuimv26RMvHTGQqx.png

Week-to-date data refers to the week of August 16 to August 22.

Bitcoin ETFs continue to see positive flows.

However, the Ethereum ETF continues to see outflows. The good news is that most of the outflows occurred within the first seven days of trading.

  • Grayscale’s ETHE ETF saw outflows of nearly $2 billion as investors closed trades after the trust was converted into an ETF. In early January 2023, the trust’s actual value was negative at a 60% premium.

BTC ETF fund inflows vs. BTC price trends

iKNWrzbMsTdx8YqqAo5KkUwaV7CS8aAEk8snRGCO.png

When Bitcoin first broke through $60,000 in February, $7.4 billion flowed in. Six months later, the price of Bitcoin has been hovering between $50,000 and $73,000.

  • However, inflows continue, and many large institutions continue to increase their holdings. As of the second quarter, 60% of large hedge funds have disclosed Bitcoin ETF holdings. Millennium disclosed holdings of more than 27,000 BTC.

BlackRock’s IBIT ETF saw the most inflows at $20.6 billion, while Fidelity’s FBTC came in second at $9.8 billion.

  • Since Grayscale transitioned from a trust to an ETF, it has seen $19.7 billion in outflows as investors move to ETFs with lower fees. Grayscale’s fees are 1.5%, while the next highest fee is 0.25%.

ETH ETF Inflows Vs. ETH Price Trends

milGYmXUnyw3qorAu9VQFVsNQ7vLE2ORZoe2nWLw.pngThe Ethereum ETF, on the other hand, tells a very different story.

There is debate over whether L2 is good or bad for Ethereum, and rumors about Solana and Avalanche ETFs being approved in the U.S. are starting to heat up. Brazil has already approved two Solana ETFs. Bloomberg's ETF analysts say the likelihood of more crypto ETFs being approved depends on whether there will be a leadership change this November. Currently, Polymarket has a 6% chance of Solana ETFs being approved in 2024.

The rest of this year is going to be crazy, now all we can do is buckle up and enjoy the ride!

Inflows are negative and Ethereum prices have fallen 24.7% since the ETF’s inception.

  • However, BlackRock continues to dominate the ETF market. They have already pumped $1 billion into ETHA, and excluding outflows from Grayscale products, Ethereum ETF inflows have reached $1.8 billion. At this time, the crypto community is divided over the future of Ethereum as the dominant smart contract platform.

#BTC #ETF #ETH