Bitcoin Exchange-Traded Funds (ETFs) have been on a remarkable streak recently, with over $500 million flowing into the largest US-based products in the last trading week. On the contrary, Ethereum ETFs are facing challenges, characterized by low trading volumes and frequent withdrawals.
The beginning of the month was rocky for spot Bitcoin ETFs, as they experienced a loss of over $550 million in just three days on August 2, 5, and 6. This decline coincided with a major crash in BTC prices, dropping from over $65,000 to below $50,000 within a few days. Despite this setback, both inflows and the price of the cryptocurrency began to recover in the subsequent weeks, showing resilience in the market.
The past week has been particularly impressive for Bitcoin ETFs, with a total inflow of $506.4 million across five trading days. This included $62.1 million on Monday, $88 million on Tuesday, $39.5 million on Wednesday, $64.8 million on Thursday, and a massive $252 million on Friday. BlackRock’s IBIT led the way with significant gains on multiple days, in stark contrast to Grayscale’s GBTC, which continued to experience outflows consistently.
Ethereum ETFs Struggle to Gain Traction
In contrast to Bitcoin ETFs, Ethereum ETFs have struggled to attract interest and investment since their launch in the United States three weeks ago. The spot Ethereum ETFs have been on a seven-day withdrawal streak, indicative of the lack of demand and enthusiasm for these products. Grayscale’s ETHE, for example, has seen withdrawals on 13 out of 14 trading days, reflecting a lack of confidence in Ethereum ETFs.
The past week for Ethereum ETFs has been marked by continuous withdrawals, with $13.5 million taken out on Monday, $6.5 million on Tuesday, $18 million on Wednesday, $0.8 million on Thursday, and $5.7 million on Friday. BlackRock’s ETHA, the first fund to exceed $1 billion, only saw inflows on Monday, while Fidelity’s FETH had a strong Thursday with $14.3 million in net flows. This data reaffirms the challenges faced by Ethereum ETFs compared to their Bitcoin counterparts.
While Bitcoin ETFs continue to attract significant investments and recover from setbacks, Ethereum ETFs are struggling to gain traction and are experiencing consistent withdrawals. The discrepancy between the two cryptocurrency ETFs highlights the varying levels of investor confidence and interest in the market. Only time will tell if Ethereum ETFs can overcome their current challenges and establish themselves as viable investment options in the future.
