Dow Jones Drops Sharply Amid Market Turmoil; Ethereum ETFs See Unexpected Inflows
The Dow Jones Industrial Average fell by 2.6%, the S&P 500 by 3%, and the Nasdaq Composite by 3.43%, marking the worst day for these indices since September 2022. This decline was driven by disappointing U.S. jobs data and shrinking manufacturing activity, which increased recession fears.
Global Market Reactions
Japan's Nikkei 225 index plummeted by over 12%, marking its largest single-day drop since 1987. This followed the Bank of Japan's unexpected decision to raise interest rates last month.
While the global market wobbled due to widespread sell-offs and recession fears, investors showed renewed interest in Ethereum exchange-traded funds (ETFs).
Ethereum ETFs Attract Millions
On Monday, Ethereum ETFs saw a positive daily net inflow of $48.7 million, according to SoSoValue data. This is the second-largest daily inflow since the funds were approved on July 23.
Despite the turbulent market, Ethereum bounced back from Monday's sell-off, rising more than 10% to $2,552, based on CoinGecko data.
Market Analyst Insights
"ETFs are going to become an increasingly important bellwether for the health of the crypto market," Pav Hundal, lead market analyst at crypto exchange Swyftx, stated. "The market had an epic temper tantrum yesterday, resulting in huge liquidation events," he added. "Meanwhile, you have ETF investors with long-term strategies calmly buying Ethereum."
Tracking Cumulative Net Inflows
Even with strong daily performance, the cumulative total net inflow for Ethereum ETFs remains at -$461.98 million, reflecting significant outflows from previous weeks.
Grayscale’s Ethereum ETF continues to drag on cumulative inflows, accounting for a cumulative net figure of -$2.16 billion. All other eight funds listed, including those by Fidelity and BlackRock, have recorded positive daily and cumulative net inflows since their launch two weeks ago.
According to Hundal, if ETF inflows remain strong or steady, it is a good indicator that smart money expects this to be a short-lived market correction. However, sustained outflows or inactivity could signal more serious market issues.
Bitcoin ETFs See Fluctuations
Bitcoin ETFs have also faced substantial fluctuations. On Monday, the asset’s U.S.-based funds recorded a daily net outflow of $168.44 million, contributing to a cumulative total net inflow of $17.34 billion.
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