BlackRock’s Spot Ether ETF Investors Bought the Dip as Ether Tanked
- August 7, 2024
Key Takeaways
- Ether fell to a low of $2,116 yesterday, a decline of 26% from the previous day’s high.
- Despite the drop, spot ether ETFs saw $48.8 million in inflows on Monday, with $47.1 million of that total flowing into BlackRock’s ETHA.
- The bitcoin price also fell on Monday; however, spot bitcoin ETFs saw $168.4 million in outflows.
Spot ether exchange-traded funds (ETFs) reported their second-best day of inflows since their July 23 launch on Monday, even as ether ( ETHUSD ) prices crashed amid a broad market rout.
Ether, which is the underlying cryptocurrency of Ethereum and the second-largest crypto asset by market cap, dipped below $2,116 yesterday, a 26% drop from the previous day’s high of slightly more than $2,900.
Despite the sharp price decline, spot ether ETFs saw inflows of $48.8 million on Monday, according to Farside Investors. Almost 96% of the total inflows, or $47.1 million, went into BlackRock’s iShares Ethereum Trust ETF ( ETHA ). Grayscale’s Ethereum Trust ( ETHE ) continued to see outflows, with investors pulling out $46.8 million.
Bitcoin saw a price decline of around 18% and dropped below $50,000 for the first time since February. Unlike ether, spot bitcoin ETFs experienced net outflows of $168.4 million, according to Farside Investors.
Investors pulled money out of three funds—Fidelity’s Wise Origin Bitcoin Fund ( FBTC ), ARK 21Shares Bitcoin ETF ( ARKB ), and Grayscale’s Bitcoin Mini Trust—while other products showed zero net flows.
On Tuesday, the price of bitcoin ( BTCUSD ) rebounded to nearly $57,000, while ether traded close to $2,500.