US spot Bitcoin, Ethereum ETFs record joint outflows for first time

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As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent outflows from Bitcoin and Ethereum ETFs have caught my attention. Having weathered numerous market cycles and witnessed the crypto space evolve, I’ve learned to read between the lines when it comes to market trends.

For the first time on August 2nd, both Bitcoin and Ethereum-based exchange-traded funds in the United States simultaneously experienced withdrawals.

Bitcoin ETFs see outflows of $237.4m

On Friday, August 2nd, Bitcoin (BTC) ETFs based in the U.S. saw a total withdrawal of approximately $237.4 million at the end of trading. This represents the biggest withdrawal from these investment products since early May, when they collectively experienced outflows amounting to $563.8 million.

Daily Flow of Bitcoin ETFs (US$ Million) as of August 2, 2024 (Preliminary Data):

— Farside Investors (@FarsideUK) August 3, 2024

On that particular day, it’s noteworthy that the Fidelity Wise Origin Bitcoin Fund (FBTC) experienced the largest withdrawals, amounting to $104.1 million. This was closely followed by Ark and ARKB, with $87.7 million in outflows each.

Yesterday, the trend for Grayscale’s GBTC persisted as it experienced a decline, with a net outflow of approximately $45.9 million. Similarly, Bitwise’s BITB and VanEck’s HODL witnessed outflows totaling $29.4 million and $23 million respectively. In simpler terms, these three Bitcoin investment products saw significant money flowing out on yesterday’s market.

Yesterday, the Bitcoin ETFs managed by BlackRock (IBIT) and Grayscale (Grayscale Bitcoin Mini Trust) attracted investments worth $42.8 million and $9.9 million respectively. Meanwhile, other spot Bitcoin ETFs did not show any significant change in their holdings.

In summary, the week concluded on a down note, seeing a collective withdrawal of about 80.68 million dollars from all Bitcoin spot ETFs.

Based on SoSoValue’s findings, the combined daily trading volume for these financial tools amounted to approximately $2.34 billion on August 2nd (Friday), a decrease from the $2.91 billion reported on August 1st (Thursday). However, it remains significantly higher than the $1.37 billion recorded on July 31st (Wednesday).

Ethereum ETFs also log outflows of $54.3m

On August 2nd, nine Ethereum (ETH) exchange-traded funds based in the U.S. collectively experienced a net withdrawal of approximately $54.3 million, primarily driven by Grayscale’s ETHE with an outflow of around $61.4 million.

Total Ethereum ETF Investment Flow (in millions of US dollars) as of August 2nd, 2024 (Preliminary data):

— Farside Investors (@FarsideUK) August 3, 2024

On that particular day, only Fidelity’s FETH and Franklin’s EZET Exchange-Traded Funds experienced inflows of $6 million and $1.1 million respectively. However, these inflows were far less than the outflows from ETHE, resulting in a net loss that could not be compensated. The other Ethereum-based ETFs did not experience any net inflow or outflow on that day.

Over the past five trading days, there have been significant outflows totaling approximately $169.4 million from Ethereum ETFs, making the recent week particularly challenging for these investment products.

According to SoSoValue’s data, the combined daily trading volume for these Ethereum ETFs amounted to approximately $438.61 million on August 2nd. This figure is significantly higher compared to the recorded $331.11 million on the previous day, August 1st. However, it’s still below the $472.5 million trading volume observed on July 31st.

On August 2, the combined outflows from Bitcoin and Ethereum ETFs changed the situation compared to August 1, as both ETFs had recorded joint positive inflows for the first time since the launch of the nine Ethereum ETFs on July 23, marking a reversal on that day.

Simultaneously, the recent withdrawals from these investment items occurred during a 24-hour period that saw a 4.5% decrease in the overall value of the cryptocurrency market, as indicated by data from CoinGecko.

The cost of one Bitcoin dropped by about 4.4%, putting it at around $62,000. On the other hand, Ethereum experienced a fall of around 5%, currently valued at roughly $3,000.

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2024-08-03 16:26