Institutional investors are seizing the opportunity presented by Ethereum’s recent price drop, with spot Ethereum exchange-traded funds (ETFs) witnessing a return to positive inflows. In contrast, Bitcoin funds continue to experience outflows.
U.S. spot Ethereum ETFs saw significant inflows after a sharp market downturn that caused Ethereum’s value to fall by 23% within a single day.
On August 5, the combined inflow for the nine newly launched spot ETH ETFs amounted to $49 million, marking their second-highest inflow day since inception.
This inflow is particularly noteworthy as it represents only the fourth day of positive inflows in the past ten trading days, indicating that institutional investors are buying the Ethereum dip.
Ethereum’s Resilient Buyers
BlackRock’s ETHA fund led the inflows with $47.1 million, bringing its total to $760 million. VanEck’s ETHV fund followed with $16.6 million, and Fidelity’s FETH received $16.1 million.
The Bitwise ETHW fund attracted $7.2 million, while Grayscale’s Ethereum Mini Trust (ETH) saw $7.6 million in inflows. However, the primary Grayscale ETHE fund experienced an outflow of $46.8 million, its lowest since becoming a spot ETF.
Conversely, Bitcoin funds did not enjoy the same dip-buying activity, with an outflow of $168.4 million on Monday, according to preliminary data from Farside Investors.
Fidelity, Ark 21Shares, and Grayscale each reported outflows between $58 and $70 million, while BlackRock and four other funds had zero inflows.
Grayscale’s Mini Bitcoin Trust saw a minor inflow of $21.8 million, and both Bitwise (BITB) and VanEck (HODL) received about $3 million each.
Bitwise CIO Matt Hougan noted that while there was dip buying in both Ethereum and Bitcoin funds, investors were primarily focused on Ethereum.
Ethereum Price Forecast
Ethereum’s markets took a significant hit, with the asset dropping to a 2024 low of $2,171 on August 5. This represented the steepest and fastest price decline since May 2022, with a 34% drop in less than a week.
However, the market showed signs of recovery during the Tuesday morning Asian trading session, with ETH climbing back to $2,500.
For Ethereum to continue its upward trend, it needs to break through the resistance at $2,900, although this may take some time, especially if Bitcoin’s recovery remains slow.
