As a seasoned analyst with over two decades of experience in the financial markets, I find myself constantly intrigued by the dynamic nature of the cryptocurrency sector. The latest developments in the U.S. spot Bitcoin and Ethereum ETFs are no exception.
U.S.-listed Bitcoin ETFs experienced inflows once more, while Bitcoin Ether counterparts witnessed significant outflows, marking the end of their three-day winning streak.
According to SoSoValue’s data, the total influx into the 12 U.S.-based Bitcoin Spot ETFs amounted to $11.11 million on August 15. This marked a reversal from the minor outflow observed the day before.
Leading the way in investment inflows was Fidelity’s FBTC with a sum of $16.2 million, closely followed by Grayscale’s Bitcoin mini trust and Biwise’s BITB, which respectively received $13.7 million and $6.2 million. The only exception was Grayscale’s GBTC, which recorded outflows amounting to $25 million on the day, increasing its total net outflows since launch to a significant $19.57 billion. The remaining seven Bitcoin ETFs did not report any changes in their inflows or outflows for the day.
Spot Ether ETFs see substantial outflows
In a reversal from the previous trends, I observed a total of $39.21 million being withdrawn from Ethereum-based ETFs on August 15, marking a stark contrast to the daily inflows of $10.8 million and $24.3 million we had seen before. Notably, Grayscale’s ETHE led this outflow, with an additional $42.5 million being removed from it, bringing its total outflows since inception to a substantial $2.38 billion.
On that particular day, Fidelity’s FETH and BlackRock’s ETHA recorded moderate investments worth $2.5 million and $0.8 million respectively. The other seven Ethereum ETFs showed no substantial activity. However, despite these outflows, the overall trading volume of Ether ETFs increased significantly to $240.58 million, which is more than the previous day’s figure. To date, these funds have collectively experienced a net outflow of $405.11 million.
Leveraged fund attracts investor focus
Currently, the U.S. Securities and Exchange Commission has approved Defiance, a U.S.-based ETF provider, to launch a new fund called MSTX. This fund offers investors a magnified daily return of 175% on MicroStrategy, an innovative company. By investing in MSTX, individuals can gain leveraged exposure to cutting-edge firms without requiring a margin account.
Intense Heat Wave: Here’s a glance at the U.S.’s most unpredictable Exchange-Traded Funds (ETFs) with $MSTX projected to lead the pack initially. However, expect this ‘volatility threshold’ to be surpassed in the future as issuers aim to test the limits of their offerings, potentially more so if $MSTX gains popularity.
— Eric Balchunas (@EricBalchunas) August 15, 2024
During its initial day of trading, MSTX recorded approximately $22 million in transactions, potentially establishing a new benchmark, as suggested by Eric Balchunas, Senior ETF Analyst at Bloomberg.
Regardless of the emergence of a new ETF called IBIT and other developments, the overall cryptocurrency market has exhibited a relatively subdued reaction. The majority of significant cryptos have either held steady or seen limited growth. Bitcoin (BTC) rose by 0.77%, while Ethereum (ETH) experienced an even smaller increase of 0.16%, according to crypto.news data.
Initially, Bitcoin dropped below $57,000 but subsequently recovered to reach $58,442 as of now. Among the top 10 cryptocurrencies by market capitalization, Aptos (APT) and Celestia (TIA) experienced the most significant declines in a single day, falling 4.9% and 3.8%, respectively.
Bitcoin is currently testing the channel floor as a source of support. Maintaining its current price level could foster a positive trend moving forward. #Cryptocurrency #Bitcoin
— Rekt Capital (@rektcapital) August 15, 2024
As an analyst, I’ve been closely observing the Bitcoin market, and in my latest analysis on X dated August 15, I pointed out that Bitcoin is currently testing the lower boundary of its trading channel as a support level, signified by a green circle on the chart. Maintaining this price stability at the current level could potentially set the stage for a continued upward trend in the future.
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2024-08-16 12:16