Following the significant inflows observed in the initial week of August, attention shifted to the subsequent week. However, the situation became clear. The spot exchange-traded funds that monitor the performance of the largest cryptocurrency by market capitalisation have once again experienced a downturn over the past five trading days, with only one day showing net inflows exceeding outflows. Despite the ETH ETFs ending a five-week period of gains, the net withdrawals experienced were markedly less severe compared to those of Bitcoin ETFs. Source reported last weekend that the Bitcoin ETFs had registered their best week since April in terms of net inflows, with more than $850 million entering the funds. This was in stark contrast to the preceding months, during which withdrawals prevailed, and the infrequent instances of net inflows were rather limited.
Consequently, optimism has resurfaced within the cryptocurrency community, suggesting that the prolonged inactivity regarding ETFs in late Q2 has come to an end and that investors have indeed altered their behaviour. However, the second full week of August did not yield the requisite confirmation. Conversely, the funds experienced an outflow of nearly $390 million. Monday was the most painful day, with 144.67 million dollars leaving the funds. On Wednesday, withdrawals amounted to $61.16 million, followed by $131.13 million on Thursday, and $57.63 million on Friday.
The only positive day was Tuesday; however, the actual $4.89 million was insufficient to counterbalance any of the losses. Meanwhile, BlackRock’s IBIT remains the dominant player in the Bitcoin ETF market, boasting net assets approaching $47 billion. Fidelity’s FBTC, with a valuation of $10.70 billion, and Grayscale’s GBTC, valued at $8.26 billion, follow suit. In contrast to the Bitcoin ETFs, the funds that track the largest altcoin experienced a remarkable all-green streak, enduring for five consecutive weeks. It commenced in the initial full week of July and continued thru to the first full week of August. During this period, the aggregate net inflows rose from below $10.90 billion to $11.46 billion.
However, the streak was interrupted in the past week, despite the fact that the actual withdrawals were relatively modest, totalling just $2.26 million. Consequently, the Ethereum ETFs have once more surpassed their Bitcoin counterparts in performance. On Monday and Tuesday, net outflows amounted to $14.59 million and $1.76 million, respectively. Although there were net inflows of $7.38 million on Wednesday and $6.72 million on Thursday, these did not suffice to recover the total losses incurred. Interestingly, Friday marked a day of inactivity, as SoSoValue reported $0.00 in net flows, a rarity for the Ethereum ETFs.
