Ethereum ETFs Accumulated Higher ETH Holdings Than Debut Day, Yet Cash Inflows Lagged

Following a recent downturn in the crypto market, there was a surge of interest from investors in Ethereum spot exchange-traded funds (ETFs).

Data from CoinGlass revealed that on August 6, Ethereum (ETH) ETFs experienced inflows of nearly 40,700 ETH. This amount surpassed the initial day inflow of just over 31,000 ETH when the ETFs were first launched.

In terms of U.S. dollars, the record for the highest inflows on the first trading day, July 23, stood at over $106 million. Comparatively, the recent inflows on August 6 totaled $98.4 million due to ETH trading at a lower value than its launch day.

August 6 marked the second-highest inflow day for the funds in U.S. dollar terms. At the time of reporting, the price of Ethereum had risen by 1.6% to $2,498.50. Despite this increase, it remained 25% lower than the previous week’s value based on CoinGecko data.

Notably, this week saw significant inflows reported by the Ethereum ETFs, with the most substantial inflow of 18,157 ETH on August 5, amounting to nearly $49 million.

Pav Hundal, the lead market analyst at Swyftx, highlighted the growing importance of ETFs as indicators of the crypto market’s health. He noted that ETF investors were strategically purchasing Ethereum for the long term.

The data suggests that institutional investors are capitalizing on market dips, a trend supported by FalconX’s observation that various investor profiles were net buyers on recent days.

CoinMarketCap data indicated a surge in the global crypto market cap from $1.95 trillion to $2.02 trillion within 24 hours, reflecting a capital injection of $70 billion.

Furthermore, CoinGlass liquidation data disclosed over $150 million worth of liquidations in the crypto market over the same period, with $84 million from short positions and $66.4 million from long positions.

Edited by Stacy Elliott.