Ethereum ETFs post second-largest daily inflows amid market volatility
On the first day of the week, a significant amount of capital flowed into U.S. Ethereum spot ETFs, despite the upheaval in the global markets fueled by sweeping selloffs and anxiety over potential economic downturns.
The Dow Jones Industrial Average fell sharply by 2.6%, the S&P 500 dropped by 3%, and the Nasdaq Composite declined by 3.43, marking the most severe drop since September 2022 across all indices.
These downturns were largely attributed to unsatisfactory U.S. employment figures and a contraction in manufacturing output, stoking fears of an impending recession.
In Japan, the Nikkei 225 index suffered over a 12% dive, the most significant single-day loss since 1987, following the Bank of Japan's surprising move to increase interest rates the previous month.
Amid these stormy conditions, Ethereum ETFs experienced a positive influx of $48.7 million on Monday, as per data from SoSoValue, indicating the second highest influx since their authorization on July 23. Ethereum has rebounded from Monday's downturn, climbing over 10% to $2,552, as reported by CoinGecko.
Experts believe that ETFs will play a key role in demonstrating the viability of the cryptocurrency market
The market witnessed a substantial outburst yesterday, with broad-based indiscriminate selling leading to significant liquidations. Amid this, ETF investors focusing on long-term goals steadily accumulated Ethereum.
Despite this robust daily performance, the overall net influx stands at -$461.98 million, indicating considerable outflows in the preceding weeks.
The cumulative net inflow provides a snapshot of capital movements into or out of the ETFs over time, aggregating all daily net inflows up to the current date.
Similar to the case with Bitcoin, Grayscale’s Ethereum ETF has influenced the cumulative inflows negatively, showing a net figure of -$2.16 billion.
Conversely, all other eight funds listed, including those from Fidelity and BlackRock, have demonstrated positive daily and overall net influx since launching two weeks prior.
While there's a resurgence of interest in Ethereum ETFs, the market outlook remains guarded.
Bitcoin ETFs haven't been spared from volatility, either. On Monday, these funds in the U.S. saw a substantial net outflow of $168.44 million, yet the cumulative total net inflow still stands impressively at $17.34 billion.
