Cryptocurrency ETF Weekly | Last week, most U.S. Bitcoin spot ETFs experienced net outflows, and BlackRock listed ETHA in Brazil
Last week, the net outflow of Bitcoin spot ETFs in the United States was $277 million, with most ETFs experiencing significant capital outflows.*Organizer: Fairy, * ChainCatcher
Editor: Marco, ChainCatcher
Last Week's Crypto Spot ETF Performance
From August 26 to 29, global Bitcoin spot ETF holdings decreased by 1,213 BTC. Excluding Grayscale, other U.S. Bitcoin spot ETFs reduced their holdings by 972 BTC, unusually surpassing Grayscale's outflow.
Data from @Phyrex_Ni
Most U.S. Bitcoin Spot ETFs Experienced Net Outflows
Last week, U.S. Bitcoin spot ETFs had a net outflow of $277 million, with most ETFs experiencing significant capital outflows. BlackRock's IBIT had a net outflow of $13.5 million on August 29, marking the fifth outflow in the fund's history and the second-largest outflow.
Seven Bitcoin spot ETFs were in a net outflow state last week:
- Grayscale ETF GBTC had a net outflow of $1.9 billion, with net assets dropping to $13.25 billion;
- Fidelity ETF FBTC had a net outflow of $62.7 million, with net assets at $100 million;
- Ark Invest and 21Shares' ETF ARKB had a net outflow of $2.1 billion, with net assets at $2.61 billion;
- Invesco ETF BTCO had a net outflow of $11.1 million, with net assets at $5.2 billion;
- Bitwise ETF BITB had a net outflow of $56.6 million, with net assets at $900 million;
- Valkyrie ETF BRRR had a net outflow of $1.7 million, with net assets at $2.3 billion;
- VanEck ETF HOOL had a net outflow of $17.03 million, with net assets at $4.3 billion;
- Grayscale Mini ETF BTC had a net outflow of $8.8 million, with net assets at $100 million.
Source: Farside Investors
U.S. Ethereum Spot ETF Net Outflow of $12.4 Million
Last week, the U.S. Ethereum spot ETF had a net outflow of $12.4 million. On August 30, the total net inflow for Ethereum spot ETFs was $0, marking the first time in 30 trading days since the launch of Ethereum spot ETFs that the total net inflow was zero.
Grayscale ETHE had a net outflow of $27.8 million, with the current selling volume being only one-eighth of the initial amount, which may indicate that Grayscale's selling pressure is nearing its end. BlackRock's ETHA had a net inflow of $8.4 million on August 28, with no capital movement in the following four days.
Source: Farside Investors
Hong Kong Crypto ETF Liquidity Further Declines
Last week, Hong Kong Bitcoin spot ETFs had a net inflow of 29.75 BTC, with total net assets reaching $266 million. The Ethereum spot ETF had a net outflow of 62.46 ETH, with total net assets at $3.661 million.
In terms of trading volume, both Bitcoin and Ethereum spot ETFs recorded high single-day trading volumes on August 26 and 28. The trading volume for Bitcoin spot ETFs reached $2.05 million on August 28, while the trading volume for Ethereum spot ETFs on the same day was $1.03 million.
Data: SoSoValue
Overview of Last Week's Crypto ETF Dynamics
Cboe Submits Revised Listing Application for Spot Bitcoin and Ethereum ETF Options: According to regulatory filings, Cboe seeks to list options based on Bitcoin and Ethereum ETFs issued by asset management companies, including Fidelity, 21Shares, Invesco, VanEck, Grayscale, Bitwise, BlackRock iShares, and Valkyrie. The proposed rule changes classify cryptocurrency spot ETFs alongside commodity ETFs (such as Goldman Sachs Physical Gold ETF and iShares Silver Trust) as "securities suitable for options trading."
BOC International Securities is Launching a Virtual Asset Futures ETF: In response to recent financial regulatory reforms in Hong Kong, BOC International Securities is actively launching a virtual asset futures ETF.
Bitwise Bitcoin Spot ETF to Acquire All Assets of Osprey Bitcoin Trust: Osprey Funds, the sponsor of Osprey Bitcoin Trust (OBTC), has reached an agreement with BITB and Bitwise Asset Management for BITB to acquire all assets of the OBTC fund.
In March of this year, Osprey indicated it was considering selling or merging with a Bitcoin ETF as part of other strategic initiatives. Osprey must complete the sale or merger by September 1, 2024, or it will liquidate OBTC. Osprey Funds stated, "As part of this transaction, OBTC shareholders will receive BITB shares as part of the OBTC liquidation distribution. For existing BITB shareholders, their shares will remain unchanged, and BITB's operations will not be affected."
Before BITB's acquisition of OBTC, Bitwise had already acquired London-based cryptocurrency ETP issuer ETC Group on August 19. BITB's asset scale accounts for 4.69% of the Bitcoin spot ETF market.
BlackRock Listed Its iShares Ethereum Trust (ETHA) on Brazil's B3 Exchange Last Wednesday: The ETF will trade under the stock code ETHA39 in the form of Brazilian Depositary Receipts (BDR).
BlackRock Increased Its Strategic Global Bond Fund by 4,000 Shares of Spot Bitcoin ETF.
Views and Analysis on Crypto ETFs
Citi stated in a research report that since the launch of spot Ethereum ETF trading in the U.S. on July 23, the cryptocurrency market has been struggling.
The bank noted that during this period, other risk assets also performed poorly, but after adjusting for volatility, cryptocurrencies have underperformed since the rebound in non-farm payroll data (NFP). Unless the market gains more clarity on the "soft landing vs. hard landing outcomes" for the U.S. economy, ETF flows may continue to be disappointing.
CF Benchmarks CEO: Demand for Ethereum Spot ETFs May Continue to Grow in the Coming Months
Sui Chung, CEO of index provider CF Benchmarks, stated that demand for Ethereum spot ETFs may continue to grow in the coming months, with more wealth management companies expected to offer such products to clients.
Sui Chung said, "We expect that once wealth managers and financial advisors complete the educational process regarding what Ethereum is, its utility, and why they should hold it alongside Bitcoin ETFs, the inflows into Ethereum ETFs will continue to rise. The educational process will help investors understand the Ethereum economy and highlight the key differences from Bitcoin, thereby clarifying that the allocation drivers are different, and both belong to a balanced portfolio."
