Bitcoin ETF Inflows Resume But Ethereum ETF Loses $133M

On Wednesday, July 24, the crypto market saw a significant shift in investment flows between Bitcoin and Ethereum ETFs. Spot Bitcoin ETF flows were positive, with $44.5 million recorded. However, Ether ETFs lost a whopping $133.3 million as the hype faded. Moreover, Grayscale’s ETHE ETF saw massive outflows, which offset Fidelity and Bitwise’s ETH ETF influx.

Bitcoin ETF Vs Ethereum ETF Flows

The Bitcoin ETF inflows were driven by BlackRock’s impressive $66 million of inflows. Meanwhile, Fidelity’s FBTC took in a modest inflow of $1.4 million. Whilst, Ark 21Shares’ ARKB registered $3.3 million influx. On the flip side, Grayscale Bitcoin Trust (GBTC) faced $26.2 million of outflows.

In contrast, Ether ETFs experienced substantial outflows. Despite positive flows from Fidelity’s FETH and Bitwise’s ETHW, the total ETF outflows for the day reached $133.3 million. According to Farside UK data, the Fidelity Ethereum ETF recorded a staggering $74.6 million inflow. In addition, Bitwise’s Ether ETF saw $29.6 million in inflows, down from $204 million on debut.

Meanwhile, the net outflows include significant outflows from the Grayscale Ethereum Trust (ETHE). It saw a massive $326.9 million withdrawn due to its high 2.50% fee. The ETH market faced additional pressures as the BlackRock Ethereum ETF (ETHA) inflows plummeted from a strong debut of $266.5 million to just $17.4 million on its second day.

Furthermore, this drop highlights a shift in investor sentiment and possibly concerns about the fees and management of these funds. Despite this, Grayscale’s Mini-Ethereum Trust raked in $45.9 million, benefiting from its low 0.15% fee. Overall, the total assets under management (AUM) of Spot ETH ETFs dropped significantly from $10.255 billion to $9.538 billion. This indicates a waning investor confidence in Ethereum-based ETFs.

Earlier, on Tuesday, July 23, Spot BTC ETFs noted a $78 million outflow, potentially due to ETH ETF hype. However, now the tables have turned as BTC ETFs marked a resurgence. Thus, the market awaits the future performance of Ether ETFs to take a decisive action.

Also Read: Breaking: Hashdex Files S-1 For Combined Spot Bitcoin and Ethereum ETF

Expert Predictions For Crypto ETF Space

On Tuesday’s debut, Bitwise CIO Matt Hougan expressed surprise at the success of the Ether ETFs, including Bitwise’s ETHW. He noted that ETHW alone saw inflows exceeding $200 million on its first day. Moreover, Hougan remarked, “To be honest, it’s exceeded my expectations through lunchtime.”

He further elaborated, “We had about half a billion dollars traded in these new ETFs. By comparison, the average ETF trades about a million dollars on its launch day.” The high trading volume of these Ethereum ETFs makes them some of the most successful launches in history, second only to Bitcoin ETFs.

The success of ETH ETFs holds significant importance for the crypto market. Hougan suggested that the approval of these ETFs marks the beginning of a new era for crypto investment. “Long term, as we look into 2025, we’ve entered the ETF era of crypto. We’re going to see ETFs on multiple crypto assets; we’re going to see index-based ETFs,” he stated in a Bloomberg interview.

In forward-looking predictions, Hougan projected a larger role for institutional investors in Bitcoin and Ether ETF inflows. Currently, institutional investors account for 5-6% of Bitcoin ETF inflows, based on recent 13F filings. He expects this share to rise to 50%.

In a recent X Space hosted by Bitwise, Spencer Bogart, General Partner at Blockchain Capital, further estimated that Ether ETFs could attract over $10 billion in inflows within the first year. Similarly, Ryan Rasmussen, Head of Research at Bitwise, forecasted that the ETH price could reach a new peak between $6,500 and $7,500.

Experts also noted that the ETH price could witness a significant drop after the launch due to a sell-the-news sentiment. However, Ethereum ETF inflows were expected to counter the dip in the long term. Nonetheless, since the flows have turned negative just in the second day of trading, the future of these ETFs and other crypto ETF approvals remain uncertain.

Also Read: Bitwise CIO Teases More Crypto ETFs After Ethereum Success, Solana & XRP Next?