The Rise of Ethereum ETF Inflows After Market Crash

The recent market crash that led to a 23% tumble in Ethereum prices in less than 24 hours did not deter investors from jumping into U.S. spot Ethereum ETFs. On August 5, a total of $49 million flowed into nine newly launched spot ETH ETFs, marking the second-highest inflow day since these funds began trading. Notably, this influx occurred amidst a series of inflow days over the past ten trading days, indicating a trend of institutional investors seeing value in the Ethereum dip.

Among the various Ethereum ETFs, BlackRock’s ETHA fund stood out with an impressive $47.1 million inflow, pushing the total flow of funds into the product to $760 million. Following closely behind were VanEck’s ETHV fund with a $16.6 million inflow and Fidelity’s FETH with $16.1 million. The Bitwise ETHW fund and Grayscale’s Ethereum Mini Trust (ETH) also saw substantial inflows of $7.2 million and $7.6 million, respectively.

Interestingly, while Ethereum ETFs saw significant inflows post-crash, Bitcoin funds experienced outflows amounting to $168.4 million. Fidelity, Ark 21Shares, and Grayscale were among the entities that saw outflows ranging from $58 to $70 million. In contrast, BlackRock and four others recorded no significant flows. The main Grayscale ETHE fund saw an outflow of $46.8 million, the lowest since its conversion to a spot ETF.

The recent market turmoil saw Ethereum plummeting to its lowest price in 2024 at $2,171 on August 5, marking a 34% decline in less than a week. However, signs of recovery emerged during the Tuesday Asian trading session, with ETH bouncing back to $2,500. To sustain this upward trend, Ethereum needs to surpass and maintain resistance at $2,900, a feat that may be influenced by Bitcoin’s recovery pace.

The surging inflows into Ethereum ETFs post-market crash signal a growing confidence among institutional investors in the long-term potential of the asset. While the short-term volatility remains a concern, the resilience shown by Ethereum amid adversities indicates a promising future for the popular cryptocurrency.