NEW YORK, August 12, 2024 — Bitcoin and Ether prices are beginning to recover from last week’s global market slump, but in the short term, the overall trend in crypto investments is likely to mirror the performance of tech stocks and investor risk appetite, which remains subdued. JPMorgan analysts have highlighted a persistent trend of outflows from both Ether and Bitcoin ETFs. Ether ETFs ended the week with $105 million in net sales, while Bitcoin ETFs saw net redemptions totaling $169 million.

On Friday, U.S. spot Ether exchange-traded funds continued to experience negative flows, recording $16 million in net outflows on their 16th trading day, according to a JPMorgan research report. Grayscale’s Ethereum Trust (ETH) (NYSE) led these outflows with a $42 million reduction, though this figure was below its average since launch. In contrast, BlackRock’s iShares Ethereum Trust ETF (NASDAQ) performed relatively well, attracting $20 million in sales and bringing its total net flows to over $900 million since its launch. However, BlackRock, the world’s largest asset manager, announced that the management fee for its Ether fund would remain at 12 basis points until the fund reaches $2.5 billion in assets.

On the same day, U.S. spot Bitcoin ETFs also faced net redemptions of $90 million, following a strong performance the previous day. Grayscale’s Bitcoin Trust (BTC) (NYSE) led the outflows among 12 Bitcoin funds, with $77 million pulled out. GBTC has continued its streak as the worst-performing ETF by outflows since its launch in January, with a total of roughly $20 billion withdrawn so far. However, BlackRock’s iShares Bitcoin Trust (NASDAQ) managed to attract $10 million in sales, contributing to the $266 million in net sales since its spin-out from GBTC two weeks ago.