Spot Ether ETFs Continue Positive Flow Streak, Bitcoin ETFs Witness Outflows

Spot Ethereum exchange-traded funds in the United States witnessed positive inflows for the third consecutive day this week, in contrast to spot Bitcoin ETFs, which saw substantial outflows, reversing their two-day run of gains.

Data from SoSoValue reveals that on Aug. 14, nine Ethereum ETFs collectively attracted $10.8 million, continuing a week of gains with previous daily inflows of $24.3 million and $4.9 million.

Leading the inflow was BlackRock’s ETHA with $16.13 million, followed by Fidelity’s FETH at $6.65 million, and Bitwise’s ETHW with $2.67 million in net inflows. The Grayscale Ethereum Mini Trust, ranking second in net assets among spot Ethereum ETFs, recorded moderate inflows of $2.26 million, marking a turnaround after two days without any flows.

However, Grayscale’s ETHE stood out with continued outflows, losing $16.95 million and accumulating total outflows of $2.34 billion since its inception. The remaining four Ethereum ETFs showed no significant activity.

Despite these inflows, Ethereum ETFs experienced a decrease in trading volume, totaling $155.91 million, lower than the previous day. These funds have seen a cumulative net outflow of $365.89 million to date.

Bitcoin ETFs see substantial outflows

Conversely, the twelve U.S. spot Bitcoin ETFs registered a collective outflow of $81.36 million on the same day, ending their short-lived positive flow, per data from SoSoValue. Among them, BlackRock’s IBIT and Franklin’s EZBC were the exceptions, recording inflows of $2.68 million and $3.42 million, respectively. This marked a significant event for EZBC, posting its first net inflows since July 22.

Grayscale’s GBTC saw the highest outflows, totaling $56.87 million. Other notable outflows included $18.05 million from Fidelity’s FBTC, $6.77 million from Ark and 21Shares’ ARKB, and $5.78 million from Bitwise’s BITB. The remaining six Bitcoin ETFs reported no changes in their inflows or outflows for the day.

At the time of writing, Bitcoin (BTC) had fallen by 4.2%, trading at $58,167, while Ethereum (ETH) experienced a similar decline of 4%, with its value at $2614, according to data from crypto.news. In total, the crypto market also saw a decrease, dropping by 3.8% to a market capitalization of $2.06 trillion.

Inflation cooling may boost crypto long-term

In a statement shared with crypto.news, Eliézer Ndinga, vice president at 21Shares, analyzed the market dynamics. He mentioned that the recent inflation figures indicate a cooling yet stable economic environment, which is crucial for the cryptocurrency sector, especially following last week’s market downturn.

Ndinga suggested that with inflation aligning with forecasts, there’s an increased probability of a modest 25 basis points rate cut by the Federal Reserve, potentially bolstering risk-on assets. However, he noted that both Bitcoin and Ethereum initially responded negatively, likely due to expectations of a more substantial rate cut, such as 50 basis points or more.

While equities were mostly stable, he remains optimistic about the long-term benefits for the crypto industry, particularly if inflationary pressures persist in the short term, possibly leading to further rate reductions this year. Ndinga added that “rate cuts generally lead to more liquidity in the markets, thereby encouraging investors to seek higher returns in risk-on assets, like Bitcoin and Ethereum.”