TL;DR
- Ethereum ETFs recorded $73.22 million in inflows on August 5, outperforming Bitcoin funds that saw $196 million in outflows.
- BlackRock’s ETHA fund alone brought in $78 million, signaling rising investor confidence in ETH.
- Meanwhile, Bitcoin ETFs continue to face sustained redemptions, reflecting broader concerns over U.S. macroeconomic conditions and potential Federal Reserve constraints.
On August 5, Ethereum exchange-traded funds listed in the U.S. attracted $73.22 million in net inflows, reversing a pattern of limited activity. BlackRock’s ETHA was the leading product, bringing in $78 million and helping Ethereum ETFs register their strongest one-day inflow in recent memory. Additional contributions came from VanEck’s ETHV and 21Shares’ CETH, with inflows of $5.24 million and $3.57 million, respectively.
Notably, Grayscale’s ETHE was the only significant Ethereum-linked product to report outflows, totaling $10.91 million. This divergence highlights a growing interest in newer ETH-based funds over more traditional structures. Over the past 30 days, Ethereum’s price has increased by 40%, while Bitcoin has grown just 4%, deepening the sentiment shift among institutional investors. The consistent gains for ETH suggest a re-evaluation of its long-term potential, especially as Ethereum continues advancing its scaling roadmap.
Bitcoin ETFs See Accelerated Redemptions
While Ethereum funds posted strong gains, spot Bitcoin ETFs faced their fourth straight day of net outflows, totaling $196 million on August 5. The Fidelity FBTC ETF led the withdrawals with nearly $100 million, followed by BlackRock’s IBIT, which saw $77.42 million exit. Grayscale’s GBTC also reported a $19.65 million outflow.
The cumulative weekly outflows for Bitcoin ETFs reached $643 million, with $529 million leaving just in the first five days of August. These movements come amid renewed fears of stagflation in the U.S. economy, following economic data pointing to persistent inflation and declining job numbers. Equity markets have mirrored this caution, with the Nasdaq sliding 0.7%.
BlackRock Transfers Spark Market Speculation
Market participants are watching BlackRock’s latest moves closely after it transferred 2,544 BTC and nearly 102,000 ETH to Coinbase Prime. Although not confirmed as sales, such transfers are often interpreted as preparatory steps for liquidation.
On August 4, BlackRock’s Bitcoin and Ethereum funds, IBIT and ETHA, recorded combined outflows of over $667 million. That day alone marked the largest one-day outflows for ETH ETFs since their inception, reflecting the fast-changing dynamics between Bitcoin and Ethereum in institutional portfolios. As volatility increases, many investors appear to be rotating capital toward assets with greater perceived upside.
