- US spot Ether exchange-traded funds recorded roughly $39 million in net outflows Thursday, marking a third consecutive day of withdrawals totaling $404 million over Tuesday-Thursday despite Ether price rising 2% to $2,470. Bitcoin ETFs, by contrast, attracted $159 million in inflows. XRP ETFs lost $5 million, reversing prior day inflow. The divergence reflects divergent investor sentiment: Bitcoin attracting capital while Ether and XRP ETFs experience sustained outflows.
- Zcash fund posted strongest performance, adding nearly $47 million Thursday with $230 million cumulative inflows over the month. ZEC price surged 10% to $1,488, leading major crypto gainers. Hyperliquid (HYPE) token up nearly 10% to $86. Solana up 5% to $105; Binance Coin up 4% to $750; Dogecoin up 4%; Tron essentially flat. Over 30 days, Ether ETF flows remain $1.5B ahead and Bitcoin nearly $2.5B ahead, despite recent weekly divergence.
- Crypto majors traded in sync with equities Thursday as oil prices fell and Treasury yields declined post-Fed rate hike. S&P 500 gained 1% (largest advance in 6 weeks); Nasdaq 100 up 2%; semiconductor gauge up 3%. 10-year Treasury yield dropped below 5%, snapping 8-day rising streak. “Cheaper oil takes the top off inflation problem…which let bonds rally alongside stocks rather than against them. Crypto traded on same signal all week,” per article.
- The flow divergence creates watch point: Zcash ETF pulling flows on days largest crypto ETFs bleed suggests market segmentation or rotation toward privacy coins. If this pattern persists into next week, it could signal structural shift in crypto investor preference. Bitcoin’s sustained inflows validate BTC as risk-on safe haven; Ether’s outflows despite price gains suggest profit-taking or rotations into other assets.
What Happened?
US spot Ether ETFs recorded $39 million in net outflows Thursday, extending a three-day losing streak totaling $404 million despite Ether price rising 2% to $2,470. Bitcoin ETFs attracted $159 million in inflows. XRP ETFs lost $5 million. Zcash ETF posted strongest showing with $47 million inflows (cumulative $230M this month); ZEC price surged 10% to $1,488. Solana up 5% to $105; BNB up 4% to $750; DOGE up 4%; TRX flat. Crypto majors traded alongside equities as oil prices fell 2.2% and 10-year Treasury yield declined below 5%, snapping 8-day rising streak. S&P 500 up 1%, Nasdaq 100 up 2%, semiconductors up 3%.
Why It Matters?
For Ether ETF investors, the sustained outflows despite price gains signal profit-taking or rotation—either to Bitcoin or other assets. For Bitcoin investors, sustained inflows validate BTC’s positioning as crypto risk-on safe haven. For Zcash holders, the fund’s monthly $230M inflows and 10% price surge suggest privacy-coin narratives resonating with investors during Fed tightening uncertainty. For equity investors, crypto following equities on oil/yield signals suggests crypto is now correlated to macro factors rather than decoupled. For the broader crypto market, the Ether-vs-Bitcoin divergence could signal developer/institutional sentiment shift if trend persists.
What’s Next?
Monitor Ether ETF flows through end of week; if outflows accelerate above $50M daily, it could signal structural bearish sentiment despite price strength. Watch Zcash fund flows; if it continues pulling inflows while BTC/ETH bleed, it validates privacy-coin demand thesis. Track oil prices; if Brent stabilizes below $105, it could ease inflation concerns and reduce need for Fed hikes, supporting crypto broadly. Monitor 10-year Treasury yields; if they break below 4.95%, it would support risk assets including crypto. Also watch for Fed speaker commentary; if Warsh or other officials soften hawkish stance, it could trigger broader crypto rally and potentially reverse Ether ETF outflows.
Affected Tickers & Coins: ETH, BTC, XRP, ZEC, HYPE, SOL, BNB, DOGE, TRX, SPY, QQQ, SOXX, TLT
Source: CoinDesk
