Ethereum ETFs Attracted $49M in New Investments Even as ETH Fell

Ethereum ETFs Brought in $49M While ETH Prices Fell

Ethereum ETFs – On Monday, U.S.-listed spot ether (ETH) exchange-traded funds (ETFs) saw nearly $49 million in net inflows despite a dramatic 20% drop in the price of ether. This significant decline marked ether’s largest one-day plunge since 2021, largely due to the prominent crypto trading firm Jump Crypto shifting substantial amounts of ether to centralized exchanges in anticipation of possible sales. The broader crypto market also faced pressure, with over $340 million in ETH futures liquidations exacerbating the situation.

Despite this turmoil, professional investors seized the opportunity to buy the dip. According to data from SoSoValue, ETH ETFs traded more than $715 million, the highest volume since July 30. BlackRock’s ETHA led the inflows with $47 million, followed by Fidelity’s FETH and VanEck’s ETHV, each attracting $16 million. On the other hand, Grayscale’s ETHE experienced outflows totaling $46 million, although its smaller Ethereum Mini Trust (ETH) saw $7 million in inflows.

Even with ETH Declining, Ethereum ETFs Collected $49M in New Funds

Since their launch on July 23, these ETFs have faced net outflows of $460 million, indicating that long-term interest in ETH ETFs is still developing. In comparison, Bitcoin ETFs saw over $1 billion in net inflows within their first 12 days of trading.

ETF flows are a key indicator of market trends and investor sentiment. While the price of ether has fallen sharply, applications on the Ethereum network have shown resilience, suggesting strong fundamentals. Additionally, the term LSDFi (liquid staking derivatives finance) refers to blockchain-based activities that allow users to earn rewards while maintaining liquidity through derivative tokens, reflecting ongoing innovation in the space.

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