However, Bitcoin funds continue to falter. US spot bitcoin ETFs lost $424 million on July 13 and then recovered $181 million the next day. Money going out and coming back within 48 hours is not indicative of an allocator building a position.
As such, the supply of ether is tighter. Of the $53.8 million that came in on Wednesday, BlackRock’s ETHA took in $45.3 million and its smaller ETHB fund took $4 million, leaving the other eight products to split less than $5 million between them.
Grayscale’s original ether trust, which charges 2.5% versus BlackRock’s 0.25%, has lost $5.3 billion since its launch.
Ether also found a source of demand that didn’t exist three weeks ago. Robinhood Chain, the layer 2 network that the brokerage flipped on July 1, pays gas in ether and settles in Ethereum, and has been clearing more than $800 million in daily decentralized exchange volume, most of it memecoin trading.
However, Bitcoin is more stable than its ETF flows suggest. Nansen’s data shows currency outflows holding up during the Middle East rally, with no significant rotation into stablecoins, the move that typically marks wallets taking a step back.
Funding rates are near zero, suggesting that the over-leveraged long positions that fueled June’s sell-off cascades have already been eliminated. Bitcoin dominance is 58.3%.
