Despite bleak global markets on August 5, including the cryptocurrency market, spot ether ETFs recorded inflows of more than $48 million that day, an X post by CoinGecko reveals. Notable ether inflows include ETHA with $47.1 million, ETHV with $16.6 million, FETH with $16.2 million, and ETHW with $7.2 million.
Clearly, not each ether ETF was a winner. ETHE registered an outflow of $46.8 million.
NEWS: Ethereum ETFs records $48.7M of positive inflow on Monday despite global market volatility.
📰: https://t.co/iJVTndtwvR pic.twitter.com/eNMsqZxIzc
— CoinGecko (@coingecko) August 6, 2024
Despite the pronounced bear market, which led analysts to term August 5 “Black Monday,” ether ETFs recorded a trading volume of $715.3 million. BlackRock’s iShares Ethereum Trust and Grayscale’s Ethereum Trust led the pack.
Ether and Bitcoin spot ETFs recorded a combined trading volume of $5.96 billion. According to Bloomberg ETF analyst Eric Balchunas, significant trading volumes during bear markets can signify profound investor fear.
High liquidity is a significant advantage of ether ETFs
Retail and institutional investors appreciate the high liquidity ETFs provide during market downturns. It ensures they can execute trades smoothly even if the market is highly volatile. Solid trading volumes can be a sign of positive long-term investment prospects.
Liquidity allows investors to execute trades without significantly impacting the market price. This makes ether ETFs a good choice for those navigating volatile markets.
For investors, the increasing interest in ether ETFs suggests that the acceptance of these products is growing. They could go mainstream quite soon. This tendency might indicate a broader shift towards integrating digital assets into traditional investment portfolios.
Ether ETFs continue to gain traction, giving investors a convenient way to gain exposure to the second-largest crypto by market cap.
Justin Sun withdrew 15K ether worth $36M
Another development is contributing to positive market sentiment around the Ether token. Spot On Chain reported that Tron founder Justin Sun recently withdrew 14,884 ether from Binance, worth $35.97 million. He has accumulated 392,474 ether since February, currently worth almost $1 billion.
Justin Sun also deposited USDT worth $49 million to HTX over the past few days. The analysts with Spot On Chain speculate that more ether purchases could be on the horizon.
