Ethereum ETFs Eyes $4 Billion August Inflows

U.S. spot Ethereum ETFs are poised to register approximately $4 billion in net inflows for August, marking their second-largest monthly total to date, amidst strong performance relative to Bitcoin ETFs, according to data from The Block. The outperformance of Ethereum ETFs began significantly on July 17, which aligned with a price surge in ETH. This shift transformed its year-to-date loss against BTC into a 13.8% gain as of Friday. During this timeframe, Bitcoin ETFs outperformed Ethereum ETFs only seven times, garnering a combined net inflow of $505 million compared to Ethereum's impressive $7.1 billion. In July, Bitcoin ETFs maintained their edge, attracting $6 billion in net inflows against Ethereum's record $5.4 billion. However, in August, Bitcoin ETFs are currently seeing net outflows of $622.5 million, while Ethereum ETFs have welcomed an influx of $4 billion. This trend indicates Ethereum's most substantial monthly outperformance over Bitcoin ETFs since trading began in July 2024, especially with just one trading day remaining. Over the past two months, Bitcoin ETFs tallied net inflows of $5.4 billion, while Ethereum saw $9.5 billion in net inflows. Despite this, Bitcoin ETFs lead in overall lifetime cumulative inflows, with $54.6 billion compared to Ethereum's $13.7 billion, largely due to a six-month head start. The daily inflow dominance of Ethereum ETFs came to a halt as Bitcoin ETFs regained the lead on Thursday, adding $178.9 million compared to Ethereum's $39.1 million, ending a seven-day streak of Ethereum dominance. Ark Invest's ARKB led the inflows for Bitcoin ETFs on August 28, contributing $79.8 million, while BlackRock's IBIT attracted $63.7 million. For Ethereum, BlackRock's ETHA reported the highest inflow, with $67.6 million. Bitcoin ETFs generally continue to outperform in daily trading volume. However, Ethereum ETF trading activity has been increasing, occasionally surpassing Bitcoin ETFs, achieving $2 billion in trading volume on Thursday compared to $2.5 billion for Bitcoin. Timothy Misir, Head of Research at BRN, mentioned that the demand for ETFs is absorbing more than double Bitcoin’s daily issuance, while BTC hovers around $111,000 amid neutral spot market sentiment. Despite strong inflows, ETH’s drop below the $4,500 support indicates potential short-term weakness. Disclaimer: The Block is an independent media outlet delivering news, research, and data. As of November 2023, Foresight Ventures is the majority shareholder of The Block and invests in various crypto-related entities. The Block operates independently to provide objective, timely insights into the crypto industry. This article is for informational purposes only and is not intended as legal, tax, investment, or financial advice.