For the third consecutive day, spot Ethereum exchange-traded funds (ETFs) in the United States have seen positive inflows, contrasting with a significant outflow in spot Bitcoin ETFs. This shift highlights a growing interest in Ethereum-based investment products, despite broader market volatility.
Ethereum ETF Inflows Continue
According to data from SoSoValue, nine Ethereum ETFs attracted a collective inflow of $10.8 million on August 14, building on earlier daily inflows of $24.3 million and $4.9 million this week. BlackRock’s ETHA led these inflows, which garnered $16.13 million, followed by Fidelity’s FETH with $6.65 million, and Bitwise’s ETHW with $2.67 million. The Grayscale Ethereum Mini Trust also saw modest inflows of $2.26 million after two days without any activity.
However, Grayscale’s ETHE ETF recorded continued outflows, losing $16.95 million. Since its inception, ETHE has accumulated total outflows of $2.34 billion, a significant contrast to the positive trend seen in other Ethereum ETFs. Despite the inflows, trading volume for Ethereum ETFs dropped to $155.91 million, lower than the previous day. Overall, these funds have experienced a cumulative net outflow of $365.89 million to date.
Bitcoin ETFs Face Substantial Outflows
On the same day, U.S. spot Bitcoin ETFs experienced a collective outflow of $81.36 million, ending a brief period of positive inflows. Notable exceptions included BlackRock’s IBIT and Franklin’s EZBC, which saw inflows of $2.68 million and $3.42 million, respectively. This was particularly significant for EZBC, as it marked its first net inflows since July 22.
Conversely, Grayscale’s GBTC led the outflows, with $56.87 million being withdrawn. Fidelity’s FBTC, Ark and 21Shares’ ARKB, and Bitwise’s BITB also saw significant outflows of $18.05 million, $6.77 million, and $5.78 million, respectively. The remaining six Bitcoin ETFs reported no significant changes in inflows or outflows.
Market Reactions and Broader Implications
At the time of writing, Bitcoin’s price had fallen by 4.2%, trading at $58,167, while Ethereum dropped by 4%, reaching $2,614. The overall cryptocurrency market capitalization decreased by 3.8% to $2.06 trillion, reflecting broader market weakness.
In a statement shared with crypto.news, Eliézer Ndinga, vice president at 21Shares, analyzed these market dynamics. He noted that the cooling inflation figures suggest a stable economic environment, which could be positive for cryptocurrencies in the long term. Ndinga highlighted the possibility of a modest 25 basis points rate cut by the Federal Reserve, which could boost risk-on assets like Bitcoin and Ethereum.
Despite the initial negative response from Bitcoin and Ethereum to the inflation data, Ndinga remains optimistic about the potential for further rate reductions this year. He emphasized that rate cuts generally increase market liquidity, encouraging investors to seek higher returns in assets like cryptocurrencies. This could signal a more favorable environment for crypto investments in the coming months.
