Spot Ethereum Vs Bitcoin ETFs: $73M Outflows Hit Crypto Funds

Spot Ethereum Vs Bitcoin ETFs: Which Crypto Fund Lead in August Flows?

Crypto markets faced fresh pressure as Spot Ethereum and Bitcoin ETFs together lost over $73 million on August 15, raising new questions after the latest U.S. PPI data.

Spot Bitcoin ETFs See First Outflow Since August 6

On August 15, Spot Bitcoin ETFs recorded net outflows of $14.13M. Despite this dip, the products still hold $54.97 billion in cumulative inflows with $3.28 billion in total value traded.

Source: SoSoValue

When looking at the weekly trend, it showed $547.82M inflows, signaling that longer-term interest remains intact. Out of 12 providers, only iShares Bitcoin Trust (IBIT) posted gains, adding $114.40 million inflows. In contrast, Grayscale Bitcoin Trust (GBTC) led the day’s redemptions, with a sharp $81.82 million outflow.

The main reason behind this sudden drop is the BTC price crash. After gaining 1% during the week, it slipped 1.28% in a single day. Analysts say hotter U.S. PPI data (+3.3% YoY) shook market confidence, cutting hopes of a quick Fed rate cut. Large whale sell-offs added extra pressure, triggering fears of a crypto crash among investors.

Spot Ethereum ETFs Record Heavy Outflows Despite Weekly Gains

The bigger shock came from Spot Ethereum Exchange traded funds, which lost $59.34 million on August 15 after gaining a record inflow of $1Billion on August 8. This marked their first daily outflow since August 5. Even so, the funds still boast $12.67B in cumulative inflows and $3.54 billion traded overall.

Source: SoSoValue

Among providers, only iShares Ethereum Trust (ETHA) posted an inflow of $338.09 million, while Fidelity Ethereum Fund (FETH) reported the largest outflow at $272.23 million.

The trigger here was the ETH price crash, plunged 4.11% in 24 hours, falling to $4,453.86, as $1.1B crypto liquidations hit the market, with longs suffering the hardest. Once again, US PPI data today was the spark, as investors priced in fewer chances of Fed easing.

Still, looking from the weekly time frame, the picture was that of strong resilience, with record inflows of $2.85 billion. This suggested that despite the daily movements, investor appetite for the asset remains strong.

Bitcoin vs. Ethereum ETFs: Who Leads in Monthly Flows?

When pitted against one another, both present a clear scenario. Spot ETH received inflows of $5.43 billion in July and have added $3.03 billion so far in August.

Incidentally, Spot Bitcoin ETFs saw inflows to the tune of $6.02 billion in July but seem to have seen a slight reversal to the tune of $17.67 million outflows this month. This shift shows that investors are currently leaning more toward Ether products. Experts say reasons include ETH’s 10-year completion, major institutional purchases, and upcoming network upgrades.

Some analysts even hint that Ethereum could be the best crypto exchange traded funds choice in August, given the performance gap.

Conclusion

The latest BTC news and ETH news have also shown the paramount sensitivity of Exchange traded funds to important macroeconomic triggers such as the U.S. PPI data. And yet, all Bitcoin ETFs and Ethereum ETFs experienced single-day outflows in the wake of the latest crypto crash, but ETH retained stronger momentum at the weekly level. With the monthly data in hand, one would clearly see the shift in investor interest, with ETH leading the race for the best crypto ETF. 

Disclaimer: The reader should consider this article as purely informative and not seek it as financial advice. Investors should use their own research before making any decisions.