Prices of Ethereum and Bitcoin Decrease by 1% Despite Inflows of $1.05 Billion in Combined ETFs

Bitcoin and Ethereum exchange-traded funds (ETFs) experienced a surge in inflows, attracting a total of $1.05 billion on a single day. Despite this significant influx of funds, the prices of both Bitcoin and Ethereum saw a decrease of over 1% the following day.

Bitcoin ETFs alone saw an inflow of $934.8 million on May 22nd, marking the highest daily intake since January. Notably, BlackRock’s IBIT accounted for the majority of these inflows, amounting to $877.2 million. Fidelity’s FBTC and Ark Invest’s ARKB also contributed with inflows of $48.7 million and $8.9 million, respectively. The surge in Bitcoin ETF inflows coincided with Bitcoin achieving a new all-time high and Ethereum enjoying a positive market trend.

On the other hand, Ethereum ETFs received $110.5 million in net inflows, the highest since February 4th. Grayscale’s ETHE led the way with $43.7 million in inflows, followed closely by Fidelity’s FETH at $42.2 million. Additionally, ETH, linked with Grayscale, gathered $18.9 million, and Bitwise’s ETHW received $5.7 million. The Ethereum ETF category maintained a five-day winning streak, accumulating $211.8 million in net flows during that period. Overall, year-to-date net inflows stood at $61.9 million, with cumulative inflows since inception totaling $2.7 billion.

Despite the optimistic influx of funds into the ETFs, the spot prices of Bitcoin and Ethereum did not reflect this positivity, as both cryptocurrencies experienced a decline the following day. Bitcoin dropped by 1.1%, falling from its previous record-high valuation above $111,000. Similarly, Ethereum’s value decreased by 3.19%, reaching $2,579.37. However, Ethereum’s performance over the past five days showed an overall increase.

The contrast between the robust ETF inflows and the subsequent price drops of Bitcoin and Ethereum highlights the complexity of the cryptocurrency market. While inflows into ETFs are often seen as a positive sign for the market, they do not always guarantee an immediate positive impact on spot prices. The market’s reaction to these diversified investment vehicles underscores the dynamic and evolving nature of cryptocurrency trading.