US Bitcoin and Ethereum ETFs Reach $6 Billion in Volume During Market Downturn

On August 5, Bitcoin dropped below $50,000 at the beginning of US trading, leading to a significant surge in trading volumes for crypto related ETFs.

Source:indigodergisi.com

On that day, US Bitcoin and Ethereum ETFs saw nearly $6 billion in trading volume amidst market turbulence. According to data, Bitcoin spot ETFs recorded a total daily volume of $5.24 billion, with over half of that coming from BlackRock’s iShares Bitcoin Trust (IBIT). Spot ETH ETFs experienced a trading volume of $715.3 million, primarily driven by Grayscale’s Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA).

The total trading volume for the two spot crypto ETF categories reached $5.96 billion. Earlier in the trading day, Bloomberg ETF analyst highlighted on X that crazy volume during a market downturn is often a reliable indicator of fear. He explained, “On the flip side, deep liquidity on rough days is one of the reasons traders and institutions favor ETFs, so high volume is also a positive sign for the long term”

Crypto markets began to decline on August 4 after news broke of Jump Trading moving hundreds of millions of Ether to exchanges. The sell off intensified on August 5 following significant drops in the Nikkei and the unwinding of the Japanese Yen carry trade, causing Bitcoin to briefly fall below $50,000 at the start of US trading hours. Since then, Bitcoin has slightly recovered and is currently trading at $54,288.

Mixed Signals in Preliminary ETF Inflow Data

Preliminary daily inflow data from CoinGlass reveals varied outcomes across Bitcoin and Ether ETFs. The Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF (ARKB) each reported outflows of $69 million, while the Bitwise Bitcoin ETF (BITB) and the Grayscale Bitcoin Mini Trust (BTC) saw inflows of $2.9 million and $21.8 million, respectively. In contrast, the Grayscale Ethereum Trust experienced outflows of $46.8 million, whereas Bitwise and Franklin Templeton’s ETFs had inflows of $7.2 million and $900,000, respectively. Despite these preliminary figures, Bloomberg ETF analyst James Seyffart predicted in an August 5 post on X that Bitcoin ETFs will ultimately show net inflows once all data is finalized.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.