Bitcoin and Ethereum ETFs see first joint positive inflows since Ether ETF launch

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As a seasoned researcher with a penchant for deciphering market trends and a knack for understanding the intricacies of Bitcoin and Ethereum exchange-traded funds (ETFs), I find myself both intrigued and somewhat amused by this recent development.

For the first time since the debut of the nine Ethereum ETFs on July 23, Bitcoin and Ethereum exchange-traded funds in the United States experienced joint increases in investment for August 1.

Bitcoin ETFs see $50.6m in inflows

Based on Farside Investors’ data, it’s reported that Bitcoin ETFs, specifically 11 of them, had a total inflow of approximately $50.6 million on August 1. Notably, the Grayscale Bitcoin Mini Trust, which was recently launched by Grayscale, led this growth with a significant $191.1 million in inflows.

Blackrock’s IBIT saw a more restrained inflow of approximately $25.9 million, marking its third consecutive month without any withdrawals. In contrast, Grayscale’s GBTC recorded the largest net outflows among comparable products, totaling around $71.3 million.

After Fidelity’s FBTC, there were net outflows of $48.4 million. Similarly, Ark and 21Shares’ ARKB experienced $22.4 million in outflows, while Bitwise BITB had $20.7 million. VanEck’s HODL also saw $3.6 million in outflows. The rest of the Bitcoin ETFs maintained a neutral position with no significant inflows or outflows.

Based on SoSoValue’s statistics, the combined daily trading volume for these spot Bitcoin ETFs reached approximately $2.91 billion on Thursday, August 1st. This figure is significantly higher than the $1.37 billion traded on both Tuesday, July 30th and Wednesday, July 31st.

Ethereum ETFs also record positive inflows of $26.7m

Despite Grayscale’s Ethereum Trust experiencing continuous withdrawals totaling over $2 billion, the daily net inflows into the nine U.S.-based Ethereum ETFs continued to be positive.

On August 1st, there was a total investment of $26.7 million into Ethereum ETFs, with BlackRock’s iShares Ethereum Trust attracting the largest share at $89.6 million, as per data from Farside Investors.

On the very day in question, the Grayscale Ethereum Trust experienced withdrawals amounting to $78 million, pushing the cumulative outflows from this fund beyond the $2 billion mark since its transformation into a spot-based fund. Unlike the other eight Ethereum ETFs that debuted on July 23, the ETHE was initially a trust designed for institutional investors, providing them access to Ethereum (ETH). On the same day, it transitioned from a trust to a spot ETF.

Initially, ETHE was holding approximately $9 billion worth of Ethereum. The latest developments indicate that around 22% of the original funds have been offloaded from it.

On August 1st, there were inflows of $11.7 million into Fidelity’s FETH and Bitwise’s ETHW. On the other hand, no flows were observed for the rest of the Ethereum ETFs on that same day.

According to SoSoValue’s data, the combined daily trading volume for these Ethereum ETFs was $331.11 million on August 1st. This is less than the $472.5 million traded on July 31st and significantly lower than the $563.22 million recorded on July 30th.

According to a post on X dated July 29, Mads Eberhardt, a senior analyst at Steno Research, anticipates that the significant withdrawals from Grayscale’s ETHE may slow down this week, and it seems that process has already begun. As Eberhardt stated, “Once this happens, the upward trend is expected to continue.”

Currently as I’m typing this, Bitcoin (BTC) has dipped by around 0.2%, now valued at approximately $64,200. Similarly, Ethereum, the dominant altcoin in the crypto market, has experienced a minor decrease of roughly 0.7% over the past day, and is trading near $3,147 at the moment.

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2024-08-03 01:43