Cryptocurrency ETF Weekly | Half of the U.S. Bitcoin spot ETFs show net outflows, Brazil's first Solana spot ETF approved

*Organizer: Fairy, * ChainCatcher

Editor: Marco, ChainCatcher

Last Week's Crypto Spot ETF Performance

Last week, global Bitcoin spot ETF holdings decreased by 2,266 BTC. The reduction mainly came from Grayscale's GBTC, followed by outflows of 690 Bitcoins from Germany's Bitcoin spot ETF.

Data from @Phyrex_Ni

The outflow of US Bitcoin spot ETFs continues to expand, while Ethereum spot ETF sees positive inflow in its third week

Last week, US Bitcoin spot ETFs had a net outflow of $167 million, doubling the outflow from the previous week. The trading volume data remains strong, reaching $12.5 billion.

BlackRock's ETF IBIT saw a slowdown in inflow trends, even experiencing zero inflow for two consecutive days.

Last week, half of the Bitcoin spot ETFs were in a net outflow state:

• Grayscale ETF GBTC had a net outflow of $4.5 billion, with net assets dropping to $14.12 billion;
• Fidelity ETF FBTC had a net outflow of $77.1 million, with net assets at $900 million;
• Ark Invest and 21Shares' ETF ARKB had a net outflow of $65.1 million, with net assets at $800 million;
• Bitwise ETF BITB had a net outflow of $12.2 million, with net assets at $900 million;
• Franklin ETF EZBC had a net outflow of $23 million, with net assets at $8.9 billion.

Source: Farside Investors

US Ethereum spot ETFs saw a positive net inflow of $104 million in their third week.

Fidelity's FETH had a net outflow of $2.6 million on August 8, becoming the first Ethereum spot ETF to experience a net outflow after ETHE. Previously, Bitcoin spot ETFs, except for GBTC, first saw a net outflow one month after listing, initiated by Invesco.

Grayscale's ETHE had a net outflow of $179 million, with the outflow amount further decreasing. BlackRock's ETF ETHA had the highest net inflow, reaching $188 million; followed by Fidelity's ETF FETH, with a net inflow of $44.7 million.

Source: Farside Investors

Hong Kong Ethereum Spot ETF Net Inflow of 1,630.51 ETH

Last week, Hong Kong's Ethereum spot ETF was actively traded, with a net inflow of 1,630.51 ETH, increasing total net assets by $2.01 million. On August 7, there was a single-day net inflow of 1,250 ETH, marking the third-largest inflow in history. On August 5, the net inflow was 779.6 ETH, ranking fifth in historical inflows.

Hong Kong's Bitcoin spot ETF had a net outflow of 64.96 BTC, with zero subscription status from August 6 to August 8. Due to the rebound in coin prices, total net assets still increased by $4.192 million.

Data: SoSoValue

Overview of Last Week's Crypto ETF Dynamics

The Brazilian Securities Commission has approved the first Solana spot ETF, which is managed by the Bitcoin and Ethereum ETF management company QR and will be managed by Vortx. Currently, this ETF is still in the preliminary operational stage and requires approval from B3 due to regulatory reasons, with a maximum launch time of 90 days.

Progress on options products based on Ethereum spot ETFs and Bitcoin spot ETFs:

• The Chicago Board Options Exchange (CBOE) has withdrawn its original application for spot Bitcoin ETF options and has resubmitted a more comprehensive 44-page document, replacing the original 15-page version. The new document is more detailed, especially improving information on position limits and market manipulation risks. This move may indicate that the US Securities and Exchange Commission (SEC) has provided feedback. Bloomberg ETF analyst James Seyffart expects Bitcoin ETF options to be launched in the fourth quarter of this year.
• BlackRock and Nasdaq have proposed rule changes to support the listing and trading of ETHA options. Additionally, the New York Stock Exchange's US division has requested SEC approval for the listing and trading of options products based on Bitwise and Grayscale's Ethereum ETFs.

Morgan Stanley's wealth advisors will offer clients spot Bitcoin ETF ****including BlackRock's IBIT and Fidelity's FBTC. However, this is limited to high-net-worth individuals with net assets of $1.5 million or more and high risk tolerance.

Regulators have delayed the decision on the listing of Hashdex's US "altcoin" ETF. On August 9, US regulators postponed their decision on the listing of Hashdex's US "altcoin" ETF. Regulatory documents indicate that they need more time to assess whether to allow the ETF designed as a one-stop cryptocurrency portfolio to be listed on the Nasdaq Stock Market. If approved, the Hashdex Nasdaq Cryptocurrency Index ETF will become the first diversified spot cryptocurrency ETF in the US market, and also the first US ETF to hold alternative cryptocurrencies (altcoins).

Standard Chartered's virtual banking subsidiary Mox has announced the launch of cryptocurrency ETF services, and the bank also plans to expand its cryptocurrency products, including allowing direct purchase and trading of crypto assets through partnerships with licensed exchanges. Mox charges a fee of 0.12% on trading volume for spot and derivative ETFs listed in Hong Kong, with a minimum of $3.85 (30 HKD); for derivative ETFs listed in the US, it charges a fee of 0.01% on trading volume, with a minimum of $5.

Views and Analysis on Crypto ETFs

Peter Schiff: ETFs go against the decentralized purpose of Bitcoin

Economist Peter Schiff stated on social media that ETFs go against the original intention of Bitcoin; it is no longer decentralized, not peer-to-peer, easily confiscated, cannot be used as a payment currency, and cannot be transferred across borders. Users no longer own private keys, so it is no longer their coin.

Former SEC official: Morgan Stanley underwriting Bitcoin ETFs will subject it to stricter regulation

John Reed Stark, former head of the SEC's Internet Enforcement Division, stated that Morgan Stanley's recently launched large-scale Bitcoin ETF may face more stringent regulatory scrutiny. Regulators will almost immediately have access to all data regarding the bank's sales of Bitcoin to retail customers. This covers all forms of information, including documents, emails, text messages, voicemails, and phone conversations. These "evidence vaults" can be accessed not only by the SEC and FINRA but may also require on-site inspections at Morgan Stanley's offices.