Crypto investors have temporarily paused investments in Ethereum ETFs, coinciding with market consolidation for Bitcoin and Ethereum. An analysis of the situation is provided by Bitfinex.
Ethereum ETF Inflows Decline
According to the latest Bitfinex Alpha report, inflows into Ethereum ETFs have significantly decreased. During the last weekly period, daily inflows dropped to 16,600 ETH, with the previous week showing an average outflow of -41,400 ETH. On Friday, 104,100 ETH left the ETFs, marking the second-largest outflow in history.
Analysis of BTC and ETH Regarding ETFs
Bitfinex analysts note that the price movements of both BTC and ETH have become dependent on ETFs and corporate demand. ETH shows a higher dependency on ETFs, which indicates a slow down in traditional financial purchasing power. Meanwhile, BTC reflects a clearer directional conviction.
Bitcoin Forecast for September
Bitfinex predicts that BTC faces the risk of deeper corrections in the near term but may mark a cyclical low in September, potentially leading to a rally in the next quarter.
Thus, the decline in Ethereum ETF inflows poses new challenges for BTC and ETH, highlighting the importance of institutional demand and the unpredictability of market dynamics amid the current economy.
