Based on materials from the website - By BH NEWS
ETFs on Ethereum have recently experienced a significant surge in interest, especially among institutional investors. In July, Ethereum-based funds outperformed their competitors, particularly Bitcoin, attracting significant attention and stimulating overall activity. Over the past six weeks, the influx of capital into these funds has exceeded last year's figures.
The dynamics of ETFs on Ethereum have undergone significant changes: in July they briefly surpassed Bitcoin-based products. This event sparked interest among institutional investors, making Ethereum a more prominent asset class. The increased attention to Ethereum has made its ETFs more accessible across various market sectors.
One of the key factors behind this growth has been significant investments from BitMine. In a market characterized by stagnation, the influx of funds in just six weeks was comparable to the usual annual figure.
The sudden surge in capital inflow into Ethereum ETFs was unexpected, as noted by Bloomberg ETF analyst Eric Balchunas: "Ethereum ETFs received a year's worth of inflows in six weeks. After a prolonged lull, there was a sudden surge. The developments from BitMine and GENIUS gave Ethereum significant momentum."
BitMine's investments in Ethereum increased its assets to $6.6 billion, which intensified institutional interest in Ethereum. Some experts claim that BitMine's large purchases prompted other major investors to follow suit.
"The recent surge in Ethereum prompted profit-taking. However, institutional investors continue to invest in ETFs despite fluctuations, which maintains high demand compared to previous cycles," said Jamie Elkalec.
On August 7, the market witnessed significant growth in Ethereum ETFs: inflows exceeded $200 million, and weekly inflows reached $1.018 billion. Subsequently, on August 11, a record inflow was recorded, resulting in a net inflow of $639 million by August 14. However, inevitable market concerns arose after unfavorable Producer Price Index (PPI) data on August 15, leading to a net outflow of $59 million. Currently, Bitwise and Grayscale data suggest a total net outflow of $19.6 million.
Key takeaways:
Six weeks of inflows are equivalent to a typical annual volume.
BitMine's purchases of Ethereum totaling $6.6 billion have apparently had a significant impact.
After the record inflow, there was a slight net outflow due to concerns about PPI.
Even considering short-term market volatility, the potential for sustained demand from institutional investors instills hope for the stability of Ethereum-based ETFs. As significant amounts of funds flowed into these ETFs without equivalent outflows, many investors remain optimistic.
With us (in this group!), it is usually those (subscribers!) who, in search of fresh and relevant news, do not want to browse dozens of different websites and news publications, but can afford to read all the most interesting news in one news feed!!! 😉
Enjoy your viewing!!! 😊
