Author: Matthew Nay, Messari Protocol Services Research Analyst; Translation: 0xjs@Golden Finance
Bitcoin etf will take effect from January 11, 2024, and Ethereum etf will take effect from July 23, 2024.
Let's take a look at the fund inflow performance since then and compare it with the price trends during these periods.
Data as of this week points to the period from August 16 to August 22.
Bitcoin ETF continues to show positive inflows.
However, Ethereum ETF continues to experience outflows. The good news is that most of the outflows occur within the first seven days of trading.
Grayscale's ETHE ETF saw an outflow of nearly $2 billion, as investors closed trades after the trust transitioned to ETF. In early January 2023, the trust's actual value once traded at a discount of 60%.
BTC ETF fund inflow situation Vs. BTC price trend
When bitcoin first broke through $60,000 in February, inflow of funds reached $7.4 billion. Six months later, the price of bitcoin has been fluctuating between $50,000 and $73,000.
However, the inflow of funds continues, with many large institutions continuing to increase their holdings. As of the second quarter, 60% of large hedge funds have disclosed their holdings of bitcoin ETFs. Millennium disclosed holding over 27,000 BTC.
BlackRock's IBIT ETF has the highest inflow of funds, reaching $20.6 billion, while Fidelity's FBTC is second with an inflow of $9.8 billion.
Since Grayscale transformed from a trust fund to an ETF, as investors turn to lower-cost ETFs, they have withdrawn $19.7 billion. The fee for Grayscale is 1.5%, while the second highest fee is 0.25%.
ETF inflows and the trend of ETH prices
On the other hand, the story of Ethereum ETF is completely different.
There is controversy over whether L2 is beneficial or harmful to Ethereum, and rumors about Solana and Avalanche ETFs being approved in the United States are also heating up. Brazil has already approved two Solana ETFs. ETF analysts at Bloomberg believe that the possibility of more crypto ETFs being approved depends on a leadership change in November this year. Currently, the likelihood of a Solana ETF being approved in 2024 on Polymarket is 6%.
The remaining time of this year will be crazy, and all we can do now is fasten our seat belts and enjoy the journey!
The inflow is negative, and the price of ethereum has fallen by 24.7% since the establishment of the ETF.
However, Blackrock continues to dominate the ETF market. They have already injected 1 billion USD into ETHA, and excluding the outflow of funds from Grayscale products, the inflow of funds into the Ethereum ETF has reached 1.8 billion USD. At this point, the crypto community is divided on the future of Ethereum as the leading smart contract platform.