Ethereum ETFs register two consecutive days of inflows

Spot Ethereum (ETH) exchange-traded funds (ETFs) registered $98.4 million in inflows on Aug. 6, the second largest inflow since the funds began trading in July, based on Farside Investors’ data.

Notably, this was the second consecutive day of inflows for spot Ethereum ETFs traded in the US, amounting to $147.2 million. BlackRock’s ETHA assets under management (AUM) grew nearly $110 million on Aug. 6, while Fidelity’s FETH recorded $22.5 million inflows.

Meanwhile, Grayscale’s ETHE continued to record outflows, with Aug. 11 marking 11 consecutive trading days in the negative. However, the fund posted the lowest amount in daily outflows since its conversion from a trust to an ETF.

As of Aug. 6, the net flows of the eight Ethereum ETFs that started trading in the US on July 23 are negative $364 million.

Large holders pressure

Despite the bullish predictions that ETH’s price will rise following its ETF launch in the US, the event has failed to produce a substantial impact so far. 

From July 23 to Aug. 4, before the broad crash that hit the crypto market, Ethereum’s price registered a 20.6% decline. The first major factor driving the price down is Grayscale’s ETHE outflows, as the sell-off pressures the token’s performance.

Furthermore, large holders are moving ETH with apparent selling intent. Asset manager Metalpha and an unknown whale moved nearly $73 million to a Binance deposit address on Aug. 5.

Recently, the X (formerly Twitter) user identified as Lookonchain highlighted that market maker Jump Crypto continues its spree of unstaking ETH from Lido and moving it to exchanges. 

On Aug. 7 morning, the firm claimed 11,501 ETH from Lido and transferred it to sale. It also redeemed 19,049 ETH in another potential selling movement.

Meanwhile, Ethereum addresses tied to the PlusToken Ponzi scheme shut down by Chinese authorities in November 2020 also moved $464.7 million in ETH on Aug. 7, according to Arkham Intelligence.

As a result, Ethereum’s price is down 6.5% over the past 24 hours, showing the worst daily performance among the top 10 largest cryptocurrencies by market cap.

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