In recent weeks, the U.S. ETF market for cryptocurrencies has displayed a noticeable contrast. Bitcoin ETFs are drawing considerable investment, while Ethereum ETFs are experiencing ongoing withdrawals.On Monday, August 26, spot Bitcoin ETFs reported notable inflows of $202.6 million, as per preliminary figures from Farside Investors. This marks the second-highest inflow of the month and the eighth consecutive day of positive results for these funds. Out of the last 14 trading days, 12 have shown positive flows, underscoring sustained investor interest despite Bitcoin’s price volatility.
The BlackRock iShares Bitcoin Trust (IBIT) led the way with its largest daily inflow since July 22, totaling $224 million. Other notable ETFs such as the Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW) also saw inflows of $5.5 million and $5.1 million, respectively. Conversely, ETFs from Fidelity, Bitwise, and VanEck together experienced a net outflow of $32 million, while Grayscale’s GBTC and BTC ETFs reported no significant flow changes.
These inflows come as Bitcoin prices surged by 6.5%, reaching $65,150 over the weekend and Monday before slightly retracting. The broader trend is also positive, with CoinShares noting $533 million in weekly inflows for digital asset investment products.In contrast, Ethereum ETFs are struggling, with $13.2 million exiting on Monday alone, marking the eighth consecutive day of withdrawals.
The bulk of these outflows came from Grayscale’s ETHE fund, with minor withdrawals also from Fidelity and Franklin.Grayscale’s ETHE fund has seen a significant $2.5 billion drop in assets under management, a trend expected to continue. This comes despite Ethereum’s price recovery to $2,800, the highest since the August 5 downturn, though it has since dropped back to $2,685.
In summary, while Bitcoin ETFs are enjoying robust inflows and strong institutional interest, Ethereum ETFs are grappling with persistent outflows, highlighting a clear divide in investor confidence between these two major cryptocurrencies
