Ethereum and Bitcoin Prices Dip by 1% Despite $1.05B Inflows from Combined ETFs

Bitcoin and Ethereum prices experienced a slight decrease of over 1% despite the remarkable combined inflows of $1.05 billion into their exchange-traded funds (ETFs) on Thursday. The influx of money into these ETFs did not have the anticipated impact on their prices the following day. Bitcoin saw a drop of 1.1% to $109,872, while Ethereum experienced a more significant decline of 3.19% to $2,579.37.

The ETF market saw a surge in inflows, with Bitcoin and Ethereum ETFs attracting a total of $1.05 billion in net inflows, marking the largest single-day intake since January. This increase coincided with Bitcoin reaching a new all-time high and Ethereum exhibiting positive market performance. Data from The Block revealed that Bitcoin ETFs received $934.8 million in inflows on May 22nd, with BlackRock’s IBIT leading the way with $877.2 million in net inflows. Fidelity’s FBTC also saw an inflow of $48.7 million, and Ark Invest’s ARKB added $8.9 million to the mix.

Ethereum ETFs experienced their best daily flows in over three months, garnering $110.5 million in net inflows on Thursday. Grayscale’s ETHE led the pack with $43.7 million, followed by Fidelity’s FETH with $42.2 million. Ethereum’s ETH, affiliated with Grayscale, attracted $18.9 million, while Bitwise’s ETHW added $5.7 million. The Ethereum ETF category has been on a winning streak for five consecutive days, accumulating $211.8 million in net flows during that period. Year-to-date net inflows stand at $61.9 million, with cumulative inflows since inception totaling $2.7 billion.

Despite the robust ETF inflows on Thursday, the spot prices of Bitcoin and Ethereum dropped the following day. Bitcoin experienced a 1.1% decline from its record high above $111,000, while Ethereum’s decline was steeper at 3.19%, reaching $2,579.37. It is essential to note that Ethereum had shown an upward trend in its performance over the past five days.

In conclusion, while the ETF market saw significant inflows into Bitcoin and Ethereum funds, the prices of these cryptocurrencies did not reflect this on the following trading day. The market continues to exhibit volatility and unpredictability despite the influx of capital into ETFs, emphasizing the importance of staying informed and cautious when dealing with cryptocurrencies.