In the midst of a massive market crash that caused Ethereum to drop by 23% in less than 24 hours, U.S. spot Ethereum ETFs surprisingly experienced a positive day of inflows. On August 5th, the newly launched spot ETH ETFs collectively saw an inflow of $49 million, marking it as the second-highest inflow day since their inception. This unexpected surge of investments indicates that institutional investors may have taken advantage of the Ethereum dip.
Institutional Investors Support Ethereum
ETF specialist James Seyffart confirmed the trend in a post on X, stating that “ETF investors, in aggregate, likely bought the dip on Ethereum today.” BlackRock’s ETHA fund led the pack with an inflow of $47.1 million, while VanEck’s ETHV fund and Fidelity’s FETH followed closely behind with $16.6 million and $16.1 million in inflows, respectively. The interest in Ethereum was further demonstrated by Bitwise’s ETHW fund and Grayscale’s Ethereum Mini Trust, which attracted $7.2 million and $7.6 million in investments, respectively.
Interestingly, while Ethereum ETFs experienced a surge in inflows, Bitcoin funds witnessed outflows totaling $168.4 million on Monday. Fidelity, Ark 21Shares, and Grayscale all saw outflows ranging from $58 to $70 million. The only exception was Grayscale’s Mini Bitcoin Trust, which saw a minor inflow of $21.8 million. It appears that investors were more interested in seizing the opportunity presented by the Ethereum dip rather than Bitcoin.
The sharp decline in Ethereum prices, with the asset hitting its lowest price since 2024 at $2,171 on August 5th, was a cause for concern. However, signs of recovery were evident during the Tuesday morning Asian trading session, with Ethereum bouncing back to $2,500. For this upward trend to continue, Ethereum needs to surpass and sustain a breakthrough past the $2,900 resistance level. This may prove to be a challenge, especially if Bitcoin struggles to recover at a similar pace. Investors are keeping a close eye on market developments to guide their future investment decisions.
The recent surge in Ethereum ETF inflows following a market crash highlights the confidence that institutional investors have in the future of the cryptocurrency. Despite the volatility in the market, the interest in Ethereum remains strong, signaling a potential bullish sentiment among investors.