Ether and XRP ETFs post outflows as crypto majors move higher
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
U.S. spot ether exchange-traded funds (ETFs) experienced approximately $39 million in net outflows on Thursday, marking their third consecutive day of withdrawals. In contrast, bitcoin ETFs gained about $159 million in inflows. The Zcash fund also attracted nearly $47 million, contributing to monthly inflows exceeding $230 million. Overall, ether funds remain ahead by over $1.5 billion in 30 days, while bitcoin funds are nearly $2.5 billion ahead.
Why it matters
The source highlights a divergence in fund flows where ether and XRP ETFs face outflows despite positive price movements, while bitcoin and Zcash funds see strong inflows. This dynamic may indicate varied investor sentiment within the crypto market segments. Additionally, cryptocurrencies advanced alongside traditional stocks and bonds following easing inflation concerns prompted by falling oil prices and a recent Federal Reserve interest rate hike.
Key context
Ether ETFs have had continuous outflows over multiple days despite ether’s price rising 2% during the same period. The Federal Reserve raised interest rates for the first time since 2023, and lower oil prices helped ease inflation worries, supporting rallies in stocks, bonds, and cryptocurrencies alike. The Zcash fund’s inflows stand out amid the larger ETH and XRP ETF outflows, suggesting some divergence within the crypto investment funds.
Key numbers and entities
Ether ETFs posted about $39 million in outflows on Thursday, after $224 million on Wednesday and $141 million on Tuesday. Bitcoin ETFs attracted roughly $159 million, and the single U.S. Zcash fund drew nearly $47 million on Thursday. Over 30 days, ether funds are more than $1.5 billion ahead, bitcoin funds nearly $2.5 billion ahead, and Zcash more than $230 million in inflows for the month. Major cryptocurrency price moves included Zcash rising 10% to about $1,488, bitcoin rising above $77,000, and smaller gains in Solana, BNB, Dogecoin, ether, and XRP.
What remains unclear
The source does not provide specific reasons behind the sustained outflows from ether and XRP ETFs despite price gains or why Zcash is attracting unusually strong inflows. It also does not explain investor motivations or the potential long-term implications of these flow patterns on market dynamics.