- Ether ETFs are back in the green.
- The recent shift to inflows follows shifting macroeconomic winds.
- Ether ETFs were not the only funds to see significant inflows.
Ahead of 2024, several analysts had tipped Ether to outperform Bitcoin (BTC) for one main reason: ETFs. They expected the anticipation and eventual approval of these products to send demand for the asset soaring.
Despite these hopes, these ETFs have yet to meet expectations amid a seemingly unending streak of outflows. Over the past week, however, these ether investment vehicles have shown signs of changing fortunes.
Ether ETFs Break 5-Week Outflows Streak
Ether ETFs are back in the green. According to CoinShares’ most recent digital asset fund flows report, last week, ether ETFs, including BlackRock’s ETHA, Fidelity’s FETH, and Bitwise’s ETHW, recorded inflows of $87 million, breaking a five-week streak of net outflows.
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CoinShares attributed the shift in ether ETF flows to continued expectation of dovishness from the Federal Reserve following the apex bank’s decision to cut rates for the first time in four years. These rate cuts have been tipped to increase the rate of borrowing for investment, which could be a boon to perceived risk markets like crypto.
As such, ether ETFs were not the only crypto investment products to see significantly positive flows in the past week.
Bitcoin, Litecoin, and XRP Funds Record Weekly Inflows
As is often the case, Bitcoin ETFs, including BlackRock’s IBIT, Fidelity’s FBTC, and Bitwise’s BITB, saw the lion’s share of inflows in the past week. Per CoinShares data, these funds raked in a staggering $1 billion in net inflows within the week.
At the same time, Litecoin and XRP-linked funds saw inflows of $2 million and $800,000, respectively.
On the Flipside
- Not all crypto-linked funds saw net inflows in the past week. Solana, BNB, and Stacks-linked funds saw outflows of $4.8 million, $1.2 million, and $900,000, respectively.
Why This Matters
Crypto fund flows offer insight into investor sentiment. Last week’s crypto fund flows suggest that investor sentiment around Ethereum may be improving.
Read this for more on Ether ETFs:
BlackRock’s Ether ETF Eclipses $1B Net Assets Milestone in Two Months
See why FalconX believes Ethereum staking yield will be a crucial contributor to its price recovery:
Ethereum Staking Yield to Drive ETH Price Recovery: FalconX
