Ethereum ETFs See Back-to-Back Days of Inflows
Spot Ethereum (ETH) exchange-traded funds (ETFs) saw significant inflows on August 6, totaling $98.4 million, marking the second-largest inflow since these funds began trading in July, according to data from Farside Investors.
In the US, spot Ethereum ETFs experienced inflows for the second consecutive day on August 6, reaching $147.2 million. BlackRock’s ETHA assets under management (AUM) increased by nearly $110 million on that day, while Fidelity’s FETH recorded inflows of $22.5 million.
Conversely, Grayscale’s ETHE continued to see outflows, with August 11 marking the 11th consecutive trading day in the negative. However, the fund posted the lowest daily outflow amount since its transition from a trust to an ETF.
As of August 6, the combined net flows of the eight Ethereum ETFs that commenced trading in the US on July 23 amounted to negative $364 million.
Despite optimistic forecasts that ETH’s price would surge following the launch of its ETF in the US, the event has not yet had a substantial impact. Before the broader crypto market crash that occurred from July 23 to August 4, Ethereum’s price dropped by 20.6%. One of the primary factors contributing to this decline is the outflows from Grayscale’s ETHE, which exert selling pressure on the token’s performance.
Moreover, significant holders are moving ETH with evident selling intentions. On August 5, asset manager Metalpha and an unidentified whale transferred approximately $73 million to a Binance deposit address. Additionally, market maker Jump Crypto has been consistently unstaking ETH from Lido and transferring it to exchanges.
On August 7, Jump Crypto claimed 11,501 ETH from Lido and moved it for sale. Subsequently, they redeemed 19,049 ETH in another potential selling maneuver. Furthermore, Ethereum addresses linked to the PlusToken Ponzi scheme, shut down by Chinese authorities in November 2020, moved $464.7 million in ETH on August 7, according to Arkham Intelligence.
Consequently, Ethereum’s price plummeted by 6.5% over the past 24 hours, displaying the poorest daily performance among the top 10 largest cryptocurrencies by market capitalization.
At 8:48 pm UTC on August 7, 2024, Ethereum held the second position by market cap, with a price decline of 6.14% over the preceding 24 hours. Ethereum’s market capitalization stood at $282.57 billion, with a 24-hour trading volume of $24.04 billion.
