Ether ETF investors bought the recent market dip.

Amid the positive sentiment, Grayscale’s ETHE outflows continue to decline substantially.

Ether’s price appears to be stabilizing after the weekend wipeout.

Over the weekend, the total crypto market cap was reduced by about $300 billion as shifting macroeconomic winds sent panic across global risk markets. Among the hardest hit assets in the market crash has been ether, the second largest crypto asset by market cap, which, beyond macroeconomic headwinds, has seen selling from Jump Crypto and the U.S. government, setting off a decline that at one point erased all of its 2024 gains. Sponsored

Amid the market crash, however, one key class of ether investors has been buying the dip: ETF investors.

Ether ETFs Scoop up $49M Despite Market Panic

Instead of discouraging investors, the recent market crash appears to have incentivized ether ETF investors. Despite a nearly 20% decline in the price of ether on Monday, August 5, ETFs backed by the asset raked in about $49 million in net inflows, their second-largest haul since they went live for trading on July 23, highlighting strong belief in the fundamental value of the asset.

BlackRock’s ETHA saw $47.1 million in inflows, followed by VanEck’s ETHV with $16.6 million and Fidelity FETH with $16.2 million. Grayscale’s mini ether ETF ETH, Bitwise’s ETHW, and Franklin Templeton’s EZET also saw inflows of $7.6 million, $7.2 million, and $900,000, respectively. These inflows easily edged out the $47 million in outflows from ETHE, Grayscale’s larger ether ETF, which, in a positive development for ether ETFs, has seen a steady decline in outflows over the past seven days.

The data on recent ETF flows comes as the market settles after the weekend panic.

ETH Price Stabilizes

At the peak of the market panic on Monday, August 5, ETH, at one point, traded as low as the $2,100 price point. At the time of writing, however, the asset has pared most of these losses to trade around the $2,500 price point, marking a 19% bounce from the lows as analysts like Bitwise CIO Matt Hougan have called the weekend crash a buying opportunity. Sponsored

ETH Chart

Despite these sentiments, technical analysts like “CJ” and “CryptoKaleo” have suggested that ETH will likely move sideways in the short term before making another impulsive move.

On the Flipside 

Total flows to Ethereum ETFs remain negative, with a net outflow of about $462 million.

The recent net inflows to spot Ethereum ETFs pale compared to the estimated $200 million ETH dump from Jump Crypto over the weekend.

Why This Matters

Ethereum’s weekend drop sparked significant fear amongst most investors. However, the recent Ethereum ETF inflows data suggests that institutional investors remain confident in the asset’s prospects, regardless of short-term volatility.

Read these for more on Ethereum:U.S. Govt Moves ETH Worth $700K: Another Sell-off Panic?Ethereum’s Vitalik Gets Flak for L2 Interoperability Post Amid Market Panic

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