Ether ETFs See First Positive Week Since Launch!

US spot Ether ETFs had a positive net inflow of $104.8 million for the week starting Aug. 5.

Author

Danielle du Toit
August 12, 2024

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Here's what we've got for you today:

  • Ether ETF Weekly Flow Hits Positive for the First Time Since Launch

  • Crypto Startup Funding Grows to $2.7B in Q2 Despite Fall in Total Deals

  • Morgan Stanley Faces Potential Regulatory Storm Over Bitcoin ETF Push

  • Ex-Bank of Japan Official Rules Out Another Rate Hike This Year

The nine newly launched US spot Ether ETFs had a positive net inflow of $104.8 million for the week beginning Aug. 5.

  • BlackRock's iShares Ethereum Trust (ETHA) led with $188.4 million in net inflows. The BlackRock fund attracted over $900 million in just 13 days of trading without any outflow days.

  • The Fidelity Ethereum Fund (FETH) followed with $44.65 million in inflows last week, bringing its total to $342 million.

  • Other Ethereum ETFs with positive inflows included Grayscale’s Mini Ethereum Trust (ETH) with $19.8 million, the VanEck Ethereum ETF (ETHV) with $16.6 million, Bitwise’s Ethereum ETF (ETHW) with $11.7 million, and Franklin’s Ethereum ETF (EZET) with $3.7 million.

💰️ Crypto Startup Funding Grows to $2.7B in Q2 Despite Fall in Total Deals

Crypto startups raised slightly more venture capital funding in Q2 compared to the first quarter of the year. 

  • Pitchbook's Aug. 9 report shows a 2.5% increase in total invested capital but a 12.5% decline in the number of deals compared to Q1.

  • Q2 funding was led by infrastructure projects, including Monad's $225 million Series A, BeraChain's $100 million Series B, and Babylon's $70 million early-stage round.

  • Despite these investments, overall funding for crypto startups has slowed over the past 18 months, compared to the $25.3 billion and $29.4 billion that was raised in 2021 and 2022, respectively.

Crypto skeptic John Reed Stark called Morgan Stanley’s decision to promote Bitcoin ETFs to its wealthy clients a ‘death wish.’

  • Morgan Stanley's 15,000 brokers started recommending Bitcoin products to high-net-worth clients, but this drew criticism from former SEC official and crypto skeptic John Reed Stark.

  • Stark warned that by promoting Bitcoin ETFs, Morgan Stanley risks extensive scrutiny from the SEC and FINRA, including potential enforcement actions.

  • The SEC and FINRA will have immediate access to Morgan Stanley’s records, including communications related to Bitcoin sales, which could lead to investigations.

The BOJ recently raised rates for the first time in over a decade, which destabilized global markets.

  • A former Bank of Japan official indicated that the central bank would delay further interest rate hikes until next year after its first rate increase in over a decade to 0.25% on July 31.

  • The rate hike and the move away from the zero interest rate policy led to a stronger Japanese yen and the unwinding of "risk-on" yen carry trades.

  • This shift caused a sharp decline in traditional risk assets, including Bitcoin, which dropped from around $65,000 to $50,000 in less than a week.

👀 QUICK NEWS

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