Ethereum

James

BlackRock

On August 5, Bitcoin briefly surged past $56,000, recovering from a significant drop that saw its price dip below $50,000. This rebound comes after a wave of risk aversion hit global markets, resulting in substantial losses for most major cryptocurrencies.
Bitcoin’s value increased by 3.48% during this period, partially offsetting the severe declines it experienced previously. At the same time, Ethereum, the second-largest cryptocurrency, faced its most significant drop since the collapse of the FTX platform in 2022.
As of 10:13 AM Singapore time on Tuesday, Bitcoin was trading at $55,770 and Ethereum at $2,509, showing a gain of nearly 3% from earlier lows. Despite these short-term gains, traders remain cautious, worried that these improvements might be temporary. They are closely watching for broader economic improvements and easing geopolitical tensions in the Middle East.
In response to the market turmoil, there has been a noticeable uptick in purchasing activity within the crypto market, particularly for Ethereum. On August 5, newly launched Ethereum exchange-traded funds (ETFs) in the United States saw positive inflows, totaling $49 million—making it the second-highest inflow level since these funds began trading. This increase suggests that institutional investors are capitalizing on lower Ethereum prices.
James Stewart, an expert on ETF trading, confirmed these observations in a post on X on August 6. Among the ETFs, the iShares Ethereum Trust (ETHA) from BlackRock led with $47.1 million in inflows, bringing its total to $760 million.
The VanEck Ethereum Trust (ETHV) followed with $16.6 million, and the Fidelity Ethereum Trust (FETH) added $16.1 million. Other ETFs, such as the Bitwise Ethereum Trust (ETHW) and the Grayscale Ethereum Mini Trust (ETH), also saw modest inflows.
However, Bitcoin ETFs did not experience the same level of buying interest. On August 5, these funds recorded outflows totaling $168.4 million, with significant withdrawals from Fidelity, ARK 21Shares, and Grayscale, among others.
The Grayscale Bitcoin Mini Trust saw a minor inflow of $21.8 million, while the Bitwise and VanEck funds experienced small inflows of around $3 million each. Matt Hogan, CEO of Bitwise, noted that while there was some interest in Bitcoin, it was primarily focused on Ethereum.
Ethereum’s market faced a severe blow, with its price plummeting to $2,171 on August 5—its lowest level of 2024. This drop marked the most rapid decline since May 2022, with the cryptocurrency falling by 34% in less than a week. Nevertheless, by the morning of August 6, Ethereum had recovered to $2,500. For a sustained uptrend, Ethereum will need to break through the resistance level at $2,900, though this may take time, especially if Bitcoin’s recovery remains sluggish.
The post <a href="https://www.unlock-bc.com/126762/update-on-etfs-amid-market-turmoil-ethereum-sees-significant-inflows-bitcoin-lags/" rel="noopener noreferrer nofollow">Update on ETFs Amid Market Turmoil: Ethereum Sees Significant Inflows, Bitcoin Lags</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.

Update on ETFs Amid Market Turmoil: Ethereum Sees Significant Inflows, Bitcoin Lags

UNLOCK_ENG

Other articles published on Aug 6, 2024

Icebreaker Secures $5M Seed Funding to Build Blockchain Alternative to LinkedIn

Elon Musk Declares War On GARM Amid X and Rumble Ad Boycott

VeSwap × GreenCart: Transforming VeChain’s Ecosystem with Sustainable Finance

Bitcoin (BTC) Forms Death Cross Amid Market Drop

Bitcoin slips out of bull market again: Will rate cuts spark another rally?

Why Metaplanet’s $70 Million Bitcoin Bet Could Change Japan’s Financial Landscape Forever

Join our free newsletter for daily crypto updates!