Cryptocurrency ETF Weekly | Last week, the performance of cryptocurrency ETFs was bleak, with global Bitcoin spot ETF holdings decreasing by 10,800 coins
Last week, the net outflow of Bitcoin spot ETFs in the U.S. was $706 million. BlackRock's IBIT and WisdomTree's BTCW had no fund flows for four consecutive days.*Organized by: Fairy, * ChainCatcher
Edited by: Marco, ChainCatcher
Last Week's Cryptocurrency Spot ETF Performance
Last week, global Bitcoin spot ETF outflows intensified, showing poor performance, with holdings decreasing by 10,800 BTC.
Apart from Grayscale, other Bitcoin spot ETFs in the U.S. reduced their holdings by 6,744 BTC, becoming the main force behind the outflows. Only the German Bitcoin spot ETF achieved a net inflow, slightly increasing its holdings by 22 BTC.
Data from @Phyrex_Ni
U.S. Bitcoin Spot ETF Net Outflow $706 Million
Last week, the U.S. Bitcoin spot ETF experienced a net outflow of $706 million. BlackRock's IBIT and WisdomTree's BTCW saw no fund movement for four consecutive days. Other ETFs that had fund movements were almost all net outflows, reflecting extremely low investor sentiment in the U.S.
The Bitcoin spot ETF with the highest net outflow last week was Fidelity's FBTC, with a net outflow of $404 million, bringing its net asset value down to $9.17 billion. Following that, Grayscale's GBTC had a net outflow of $160 million, with its net asset value dropping to $11.92 billion.
Source: Farside Investors
Over Half of U.S. Ethereum Spot ETFs Have No Fund Movement
Last week, the U.S. Ethereum spot ETF had a net outflow of $91.1 million, which is seven times that of the previous week. Grayscale's ETHE saw a net outflow of $111 million, with capital outflows intensifying again.
Three Ethereum spot ETFs had net inflows last week, but the amounts were small:
- BlackRock's ETHA had a net inflow of $4.7 million, with a net asset value of $3.91 billion;
- Fidelity's FETH had a net inflow of $4.9 million, with a net asset value of $290 million;
- Grayscale's ETH had a net inflow of $10.3 million, with a net asset value of $829 million;
More than half of the ETFs had no fund movement, indicating that the liquidity of Ethereum spot ETFs remains insufficient.
(Note: Data for U.S. Bitcoin spot ETFs and Ethereum spot ETFs as of September 2 has not been released, which may affect the overall data.)
Source: Farside Investors
Hong Kong Cryptocurrency ETFs Have No Fund Movement
Last week, both the Bitcoin spot ETF and Ethereum spot ETF in Hong Kong had no fund movement, marking the first occurrence of this situation.
In terms of trading volume, the Bitcoin spot ETF had higher trading volumes of $1.29 million and $1.31 million on September 2 and September 4, respectively, while the other two days stabilized around $600,000. The Ethereum spot ETF had a higher trading volume of $602,000 on September 5.
(Note: Hong Kong's stock market was closed on September 6 due to a typhoon, so there were no transactions for cryptocurrency ETFs that day.)
Data: SoSoValue
Overview of Last Week's Cryptocurrency ETF Dynamics
Brazil Now Has 16 Cryptocurrency ETFs : Brazil's first cryptocurrency ETF was approved in 2020, with the management company BLP launching a cryptocurrency investment fund in Brazil in 2017.
BLP, Hashdex, and QR Asset are the main cryptocurrency fund management companies in Brazil. More than half of the 16 cryptocurrency ETFs come from Hashdex (6 funds) and QR Asset (4 funds). Hashdex and QR have a risk exposure to crypto assets of up to 100%.
Monochrome Submits Ethereum ETF Listing Application to the Australian Exchange : Monochrome and Vasco Trustees Limited submitted a listing application for the Monochrome Ethereum ETF (code: IETH) to Cboe Australia. IETH will passively hold Ethereum, providing a regulated investment channel for retail investors. IETH will adopt a dual-entry mechanism, allowing investors to redeem and subscribe in cash and physical assets.
Pending listing approval, Monochrome expects IETH to be listed on Cboe Australia by the end of September 2024 and will be available for trading on major brokerage platforms.
VanEck Announces Closure and Liquidation of Its Ethereum Futures ETF (EFUT) : The board of VanEck ETF Trust approved the liquidation and dissolution of the fund.
VanEck stated that due to insufficient demand, the company will close the fund as spot ETFs have dominated capital inflows. Reasons for the closure include the fund's performance, liquidity, managed assets, and investor interest.
After the market closes on September 16, 2024, fund shares will no longer be traded on the exchange and will subsequently be delisted. The expected fund liquidation date is around September 23, 2024.
U.S. SEC Delays Decision on 7RCC Spot Bitcoin and Carbon Credit Futures ETF to November 21 : The U.S. Securities and Exchange Commission (SEC) announced that it will delay its decision on the 7RCC spot Bitcoin and carbon credit futures ETF until November 21.
The SEC stated that more time is needed to consider the proposed rule changes and related comments before issuing an approval or denial order.
Views and Analysis on Cryptocurrency ETFs
CCData : Since the Launch of Spot ETFs, Ethereum Market Depth Has Decreased Instead of Increased
CCData shows that since the debut of nine Ethereum ETFs on July 23, the order liquidity for Ethereum has actually decreased. The average 5% market depth for ETH pairs on U.S. centralized exchanges has dropped by about 20%, to around $14 million. This means that spot prices are more likely to move 5% in either direction, indicating reduced liquidity and increased sensitivity to large orders. CCData believes that poor market conditions and seasonal factors are the main reasons.
Average 5% market depth refers to the amount of buy and sell orders within 5% of the mid-market price of the asset. The larger the depth, the stronger the liquidity and the lower the slippage cost.
Galaxy Research: One Reason for Low Trading Volume of Ethereum Spot ETFs is That Major Trading Desks Do Not Offer Margin Services
Galaxy Research's latest analysis points out that since the launch of Ethereum ETFs, their trading volume has been significantly lower than that of Bitcoin ETFs, far below the trading volume and market capitalization ratio of ETH/BTC on centralized exchanges. One of the main reasons is that many trading desks have not yet offered margin services for Ethereum ETFs.
To exclude the impact of factors such as unavailability of margin, the trading volumes of each product can be compared for the 25 days prior to their launch. During this period, the trading volume ratio of Ethereum ETFs to Bitcoin ETFs has continued to decline.
