Bitcoin ETFs still seeing inflows, while Ethereum ETF don't
On Monday, August 26, Spot Bitcoin ETFs in the United States recorded a combined influx of $202.6 million, as per the initial figures provided by Farside Investors.
This event represents the month’s second-highest daily influx and the eighth day in a row of positive performance for these financial instruments.
Furthermore, spot Bitcoin ETFs experienced inflows in 12 of the last 14 trading sessions, even though the price of Bitcoin itself did not exhibit any significant upward movement.
Leading the charge, the BlackRock iShares Bitcoin Trust (IBIT) saw its highest daily inflow since July 22, pulling in $224 million. The only other funds registering net inflows were the Franklin Bitcoin ETF (EZBC) and WisdomTree Bitcoin Fund (BTCW), attracting $5.5 million and $5.1 million, respectively.
On the other hand, ETFs by Fidelity, Bitwise, and VanEck saw a combined net outflow of $32 million. Grayscale’s ETFs, GBTC and BTC, observed no change in their net flows for the day.
The influx was noted amidst a 6.5% rally in BTC prices, hitting $65,150 during the weekend and Monday, before beginning to retract earlier today.
Globally, institutional inflows into cryptocurrency products have become positive once more. Asset management firm CoinShares highlighted that digital asset investment products experienced inflows totaling $533 million last week.
This recent activity was influenced by a softer stance from the US central bank, with Federal Reserve Chair Jerome Powell suggesting a potential interest rate cut in September, which would be the first since March 2020.
In contrast, US spot Ethereum ETFs continued to face withdrawals, marking the eighth straight day of outflows on Monday.
Approximately $13.2 million was withdrawn from Ethereum ETFs, with a significant portion exiting Grayscale’s ETHE fund. Minor outflows were also seen in the ETFs managed by Fidelity and Franklin, with others showing no change for the day.
Grayscale’s ETHE fund has seen a $2.5 billion reduction in assets under management, a trend that was anticipated and may not have concluded yet.
This continued departure occurs despite a recovery in ETH prices to their highest post-August 5 crash levels over the weekend, reaching $2,800. Nonetheless, the asset has once again seen a decline, dropping 1.8% on the day to $2,685 at the time of this report.
