US-based crypto ETFs have witnessed a change in dynamics in August, which has seen inflows tipping towards Ethereum ETFs. However, last weekโs trend of strong inflows ended with substantial outflows on Friday, with Ethereum ETFs leading the retreat with $164.64 million and Bitcoin ETFs following with $126.64 million. This sudden reversal coincides with an interesting timing of stubborn inflation data that seems to have rattled institutional investors.
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A Sudden Reversal At Weekโs End
According to data from Farside Investors, US-based Spot Ethereum ETFs ended the week with $164.64 million in outflows. The outflows came from Fidelityโs FETH with $51 million, Bitwiseโs ETHW with $23.7 million, Grayscaleโs ETHE with $28.6 million, and Grayscaleโs ETH with $61.3 million. BlackRock, on the other hand, witnessed neither inflows nor outflows into its Spot ETH ETFs, alongside 21Shares, VanEck, Invesco, and Franklin Templeton Ethereum ETFs.
Fridayโs outflows were a jarring departure from the steady gain that had defined Ethereumโs Spot ETFs since August 21. Ethereumโs six-day inflow streak, which had added about $1.876 billion, was brought to an abrupt end with the outflows on Friday. As a result, total assets under management for Spot Ethereum ETFs dipped to $28.58 billion.
Ethereum ETF Flow: Farside Investors
Meanwhile, Spot Bitcoin ETFs also recorded their first daily decline since August 22 with $126.64 million in outflows on Friday. As a result, their total assets under management dropped to $139.95 billion.
However, not every issuer felt the pressure with Bitcoin. Fidelityโs FBTC led the exodus with $66.2 million, followed by ARKBโs $72.07 million and GBTCโs $15.3 million in outflows. On the other hand, BlackRockโs IBIT still managed $24.63 million in inflows and WisdomTreeโs BTCW drew in $2.3 million amid the wider outflows.ย
Bitcoin ETF Flow: Farside Investors
The underlying cause of the outflows can be attributed to investors digesting the latest data on inflation released on Friday. Notably, the US core Personal Consumption Expenditures (PCE) index climbed 2.9% year-over-year in July, the fastest pace since February, creating fears that the Federal Reserve may hold off on rate cuts.
What May Lie Ahead This Week
As a new trading week begins, Spot ETF flow in both Ethereum and Bitcoin is likely to depend on how investors continue to interpret the data. If inflation pressures persist, institutional investors may retreat further at the beginning of the week. However, any signs of cooling could see inflows resume mid-week, particularly into Ethereum, where fundamentals are currently favorable.
On the price side of things, Bitcoinโs hold above the $108,000 price may offer some relief. However, it needs to stay above $110,000 in order for any upside move to gain momentum. At the time of writing, Bitcoin is trading at $109,910.
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For Ethereum, a daily close above $4,500 could confirm the return of bullish confidence, whereas a slide below $4,400 might signal further weakness. At the time of writing, Ethereum is trading at $4,470, up by 1.7% in the past 24 hours.
Featured image from Unsplash, chart from TradingView
