On August 6, trading volumes of the US Bitcoin and Ether ETFs reached nearly $6 billion due to market fluctuations. Spot Bitcoin ETFs reached $5.70 billion, of which more than half came from BlackRock’s iShares Bitcoin Trust (IBIT).
Spot Ether ETFs registered $715.3 million in trading volume. ”The two most traded Ethereum ETFs were Grayscale’s Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA).
On X, Bloomberg ETF analyst Eric Balchunas said that “crazy volume” during market downturns is typically associated with fear. But he also mentioned that high liquidity on difficult days is beneficial for traders and institutions, which indicates that the long-term future of ETFs is promising.
The crypto market began to decline on August 4 due to news that Jump Trading transferred hundreds of millions of Ether to exchanges. The downturn deepened on August 5 due to a steep drop in the Nikkei and the collapse of the Japanese yen carry trade.
Inflow data from CoinGlass also shows that Bitcoin and Ether ETFs are not all positive. The Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF (ARKB) both recorded outflows of $69 million each.
The Bitwise Bitcoin ETF (BITB) and the Grayscale Bitcoin Mini Trust (BTC) received $2.9 million and $21.8 million. The Grayscale Ethereum Trust had outflows of $46.8 million, while Bitwise and Franklin Templeton’s ETFs saw inflows of $7.2 million, and $900,000, respectively.
James Seyffart of Bloomberg also believes that Bitcoin ETFs will demonstrate a net inflow once the final data is obtained.
The large trading volumes in US Bitcoin and Ether ETFs on August 5 indicate increased trading activity due to volatility. BlackRock’s and Grayscale’s funds stand out, indicating the institutional demand for such products.
Also Read: Grayscale, BlackRock, Fidelity Show Resilience in Crypto Market Crash
