Ether ETFs Scoop up $49M Despite Market Panic

Instead of discouraging investors, the recent market crash appears to have incentivized ether ETF investors. Despite a nearly 20% decline in the price of ether

The total crypto market cap decreased by around $300 billion over the weekend as shifting macroeconomic winds sparked panic across global risk markets. Among the hardest hit assets in the market crash was ether, the second largest crypto asset by market cap, which saw selling from Jump Crypto and the U.S. government, setting off a decline that at one point erased all of its 2024 gains.

The second largest crypto asset by market cap saw selling from Jump Crypto and the U.S. government, setting off a decline that at one point erased all of ether’s 2024 gains.

Amid the market crash, however, one key class of ether investors appeared to be unfazed, and were, in fact, buying the dip — ETF investors.

Ether ETFs Scooped up $49M Despite Market Panic

Far from discouraging investors, the recent market crash seems to have ether ETF investors. Despite a nearly 20% decline in the price of ether on Monday, August 5, ETFs backed by the asset raked in about $49 million in net inflows, marking the second largest haul since ether ETFs went live for trading on July 23, highlighting strong belief in the fundamental value of the asset.

BlackRock’s ETHA saw $47.1 million in inflows, followed by VanEck’s ETHV with $16.6 million and Fidelity FETH with $16.2 million. Grayscale’s mini ether ETF ETH, Bitwise’s ETHW, and Franklin Templeton’s EZET also saw inflows of $7.6 million, $7.2 million, and $900,000, respectively.

These inflows easily outpaced the $47 million in outflows from ETHE, Grayscale’s larger ether ETF, which, in a positive development for ether ETFs, saw a steady decline in outflows over the past seven days.

The data on recent ETF flows comes as the market appears to be settling down after the weekend panic.

ETH Price Bounced Back from Lows

At the peak of the market panic on Monday, ETH, at one point, traded as low as the $2,100 price point. At the time of writing, however, the asset has pared most of these losses to trade around the $2,500 price point, marking a 19% bounce from the lows as analysts like Bitwise CIO Matt Hougan called the weekend crash a buying opportunity.

ETH Chart

Despite these sentiments, technical analysts like “CJ” and “CryptoKaleo” suggested that ETH will likely move sideways in the short term before making another impulsive move.

On the FlipsideWhy This Matters

Ethereum’s weekend drop sparked significant fear amongst most investors. However, the recent Ethereum ETF inflows data suggests that institutional investors remain confident in the asset’s prospects, regardless of short-term volatility.

Read these for more on Ethereum:

U.S. Govt Moves ETH Worth $700K: Another Sell-off Panic?

Ethereum’s Vitalik Gets Flak for L2 Interoperability Post Amid Market Panic