Key highlights:
- $59.3M withdrawn on August 15 ended an eight-day, $3.7B ETF inflow streak.
- Ethereum fell 1.6% short of its all-time high; social sentiment lags behind Bitcoin.
- 877K ETH queued for withdrawal raises selling pressure, but ETFs absorb supply.
Ethereum ETFs have ended an eight-day streak of capital inflows that brought in $3.7 billion. On August 15, investors withdrew $59.3 million from U.S. spot Ethereum ETFs, bringing the impressive run to a halt.
Funds outflow in the US Ethereum ETF on Aug 15. Source: Farside Investors
This reversal occurred just after Ethereum narrowly missed its all-time high from 2021. On August 14, the cryptocurrency fell only 1.6% short of its $4,868 peak.
Paradoxical market signals
Santiment analysts revealed an interesting pattern: traders are less bullish on Ethereum than on Bitcoin across social media channels. Historically, this suggests Ethereum may outperform Bitcoin in the short term.
Traders buy Bitcoin during its correction, not Ethereum. Source: Santiment
Mounting selling pressure
Alongside the recent massive inflows to ETFs, Ethereum’s staking ecosystem reached record levels, with 877,106 ETH worth $3.88 billion queued for withdrawal—a potential source of selling pressure.
However, the accumulation of Ethereum by corporate reserves and spot ETFs absorbs much of the selling pressure, helping maintain market balance.
Since launching in July 2024, the spot Ethereum ETF has accumulated $12.68 billion in net investment inflows. The eight-day streak became a significant test for the cryptocurrency, which continues to lead the altcoin market. The end of the streak does not signal the end of growth; rather, it calls for close monitoring of ongoing institutional investor activity.
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Source: https://coincodex.com/article/71637/ethereum-etfs-inflow-streak-ends/