Spot Ether ETFs continue positive flow streak, Bitcoin ETFs witness outflows

Spot Ethereum exchange-traded funds in the US saw positive inflows for the third consecutive day this week, while spot Bitcoin ETFs saw significant outflows, reversing a two-day winning streak.

According to data from SoSoValue, on August 14, nine Ethereum ETFs received a total investment of $10.8 million, continuing a week of gains that previously saw daily inflows of $24.3 million and $4.9 million.

Leading the inflow was BlackRock’s ETHA with $16.13 million, followed by Fidelity’s FETH with $6.65 million and Bitwise’s ETHW with $2.67 million. Grayscale Ethereum Mini Trust, which ranks second in net assets among spot Ethereum ETFs, recorded moderate inflows of $2.26 million, marking a milestone after two days of no inflows.

However, Grayscale’s ETHE has been the standout with continued outflows, losing $16.95 million since its inception and accumulating $2.34 billion in total outflows. The remaining four Ethereum ETFs have not shown significant activity.

Despite these inflows, Ethereum ETFs experienced a decline in trading volume, falling to a total of $155.91 million, lower than the previous day. These funds have seen cumulative net outflows of $365.89 million year to date.

Bitcoin ETFs see significant outflows

On the other hand, according to data from SoSoValue, twelve US spot Bitcoin ETFs ended their short-term positive flows, recording a collective outflow of $81.36 million on the same day. Among them, BlackRock’s IBIT and Franklin’s EZBC were the exceptions, recording inflows of $2.68 million and $3.42 million, respectively. This was a significant event for EZBC, recording its first net inflows since July 22.

Grayscale’s GBTC saw the most outflows, totaling $56.87 million. Other notable outflows included $18.05 million from Fidelity’s FBTC, $6.77 million from Ark and 21Shares’ ARKB, and $5.78 million from Bitwise’s BITB. The remaining six Bitcoin ETFs reported no changes to their inflows or outflows on the day.

At the time of writing, Bitcoin (BTC) was down 4.2% to $58,167, while Ethereum (ETH) saw a similar 4% drop, dropping in value to $2614, according to data from crypto.news. The crypto market also saw a decline overall, dropping 3.8% to a market cap of $2.06 trillion.

Decreasing inflation could boost cryptocurrencies in the long run

21Shares Vice President Eliézer Ndinga analyzed the market dynamics in a statement shared with crypto.news, noting that the latest inflation figures indicate a cooling yet stable economic environment, which is vital for the cryptocurrency sector, especially after last week’s market crash.

Ndinga suggested that with inflation in line with forecasts, the possibility of a modest 25 basis point rate cut by the Federal Reserve has increased, which could strengthen risk assets. However, he noted that both Bitcoin and Ethereum initially reacted negatively due to expectations of a more significant rate cut, likely of 50 basis points or more.

While stocks have been mostly stable, he remains optimistic about the long-term benefits for the crypto industry, especially if inflationary pressures persist in the short term and lead to further rate cuts this year. “Interest rate cuts typically lead to greater liquidity in markets, encouraging investors to seek higher returns in riskier assets like Bitcoin and Ethereum,” Ndinga added.