US Bitcoin spot ETFs bleed $168 million amid market chaos, Ether ETFs gain -

US Bitcoin spot ETFs bleed $168 million amid market chaos, Ether ETFs gain

Aug 06, 2024Jeremy ParkinsonCryptocurrency, No picture0

Key Takeaways

Grayscale and Fidelity Bitcoin funds each saw around $69 million in withdrawals on Monday.
Ethereum ETFs logged nearly $49 million in net inflows, contrasting with Bitcoin’s heavy outflows.

Investors pulled $168 million from the group of nine US spot Bitcoin exchange-traded funds (ETFs) on Monday, bringing the total net outflows for two consecutive days to $405 million, according to data from Farside Investors. Meanwhile, spot Ethereum ETFs collectively logged nearly $49 million in net inflows.Grayscale’s Bitcoin ETF (GBTC) and Fidelity’s Bitcoin fund (FBTC) dominated daily outflows as traders withdrew around $69 million from each fund.

Source: Farside Investors

In contrast, Grayscale’s Bitcoin Mini Trust (BTC), the low-cost version of GBTC, took in almost $29 million, becoming the ETF with the most daily outflows. Two ETFs that also posted gains today were Bitwise’s Bitcoin ETF (BITB) and Valkyrie’s Bitcoin fund (BRRR), attracting approximately $6 million.Other Bitcoin funds, including BlackRock’s iShares Bitcoin Trust (IBIT), reported zero flows.Bitcoin and Ethereum ETFs hit $6 billion in trading volumeAccording to data from Coinglass, US Bitcoin and Ethereum ETFs recorded nearly $6 billion in trading volume on Monday. Spot Bitcoin ETFs accounted for over $5 billion of the total volume, with IBIT and FBTC being the dominants.Spot Ether ETFs, led by Grayscale’s Ethereum ETF and BlackRock’s iShares Ethereum Trust (ETHA), contributed around $715 million to total trading volume.Bloomberg ETF analyst Eric Balchunas called the high trading volume “crazy volume during a market rout is generally a pretty reliable measure of fear.” He added that deep liquidity on bad days is valued by traders and institutions, indicating long-term benefits for ETFs.

Bitcoin ETFs have traded about $2.5b so far, a lot for 10:45am, but not too crazy (full history below). If you bitcoin bull you actually DONT want to see crazy volume today as ETF volume on bad days is a pretty reliable measure of fear. On flip, deep liquidity on bad days is part… pic.twitter.com/TOQRjyriqp

— Eric Balchunas (@EricBalchunas) August 5, 2024

Farside’s data shows that BlackRock’s ETHA captured $47 million in net inflows on August 5, followed by VanEck’s and Fidelity’s Ethereum ETFs.

These two funds captured almost $33 million in inflows. Bitwise’s Ethereum fund and Grayscale’s Ethereum Mini Trust also reported gains on Monday.The Grayscale Ethereum Trust (ETHE) suffered nearly $47 million in net outflows, the lowest since it was converted to an ETF. More than $2.1 billion was taken from the fund in ten trading days.Investors still hold around 234 million ETHE shares. With the recent crypto market downturn, those shares are now valued at around $4.7 billion, as updated by Grayscale.The crypto crash kicked off on August 4 following news of Jump Trading moving large amounts of Ether to exchanges. This led to a sharp price correction across crypto markets, with Bitcoin briefly dipping below $50,000 at the start of US trading hours on August 5. Ethereum followed suit, losing over 20% of its value in a day.At the time of reporting, both Bitcoin and Ethereum prices have covered slightly. BTC is currently trading at around $54,000 while Ethereum is up 6% to over $2,400, CoinGecko’s data shows.