Ethereum ETFs in the US See Strong Inflows Amid Global Market Volatility
Investors showed significant interest in U.S. spot Ethereum exchange-traded funds on Monday amid a turbulent global market rattled by sell-offs and recession concerns. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experienced sharp declines, marking their worst performance since September 2022.
The market turmoil was fueled by disappointing U.S. jobs data and a contraction in manufacturing activity, intensifying worries about a potential recession. Japan’s Nikkei 225 index also took a hit, plunging over 12%, the largest single-day drop since 1987, following the Bank of Japan’s unexpected interest rate hike last month.
Despite the challenging environment, Ethereum ETFs saw a positive daily net inflow of $48.7 million on Monday, the second-largest since their approval on July 23. Ethereum rebounded from the previous day’s sell-off, climbing over 10% to reach $2,552, according to CoinGecko data.
Pav Hundal, lead market analyst at Swyftx, highlighted the significance of ETFs as indicators of the crypto market’s health. He noted the contrast between market volatility and ETF investors maintaining long-term strategies by steadily buying Ethereum.
While the daily performance of Ethereum ETFs has been strong, the cumulative total net inflow remains negative at -$461.98 million due to significant outflows in previous weeks. This metric reflects the overall trend of capital flowing in and out of the ETFs.
Grayscale’s Ethereum ETF continues to weigh on cumulative inflows, contributing a net figure of -$2.16 billion. However, other funds, including Fidelity’s and BlackRock’s, have recorded positive daily and cumulative net inflows since their recent launch.
Despite the renewed interest in Ethereum ETFs, market sentiment remains cautious. Hundal emphasized the importance of monitoring inflows, as sustained outflows could signal a more concerning market trend.
Bitcoin ETFs also experienced fluctuations, with U.S.-based funds reporting a daily net outflow of $168.44 million on Monday. However, the cumulative total net inflow for Bitcoin ETFs stands at $17.34 billion, showcasing continued investor interest in the digital asset.
