Spot Bitcoin exchange-traded funds experienced a third consecutive day of outflows on Oct. 3, pushing the total withdrawals over the period to $361.2 million.
According to data from SoSoValue, the 12 U.S.-listed spot Bitcoin ETFs saw net outflows of $54.13 million on Thursday, Oct. 3, following the previous day’s $91.76 million withdrawal.
ARK 21Shares’ ARKB fund led the pack with $57.97 million in outflows, marking its fourth consecutive day of declines, with $212.1 million exiting the fund this week alone. Fidelity’s FBTC trailed closely with $37.21 million in outflows, despite experiencing a day of positive inflows earlier in the week.
BlackRock’s IBIT, the largest spot Bitcoin ETF by total net assets, bucked the trend by logging $35.96 million in inflows, bringing its total since launch to an impressive $21.5 billion.
Bitwise’s BITB and Invesco’s BTCO also recorded modest inflows of $2.65 million and $2.44 million, respectively. The remaining spot Bitcoin ETFs remained neutral on the day.
Total trading volume across the 12 Bitcoin ETFs saw a significant decline, dropping to $1.13 billion on October 3 from the prior day’s levels. Despite the recent outflows, these funds have collectively attracted a net inflow of $18.47 billion since their inception. Meanwhile, Bitcoin (BTC) was trading sideways at $61,213 at the time of reporting.
Spot Ether ETFs log $3.2m in outflows
The trend extended to U.S. spot Ethereum ETFs, which posted net daily outflows of $3.2 million. Grayscale’s ETHE led the outflows, with $14.69 million exiting the fund, followed by $587,090 in outflows from Fidelity’s FETH.
However, BlackRock’s Ethereum Trust ETHA counterbalanced some of the losses, registering $12.08 million in net inflows. The six remaining spot Ether ETFs remained static for the day.
Ether ETF trading volumes also fell sharply, with the nine funds recording $115.66 million in volume on Oct. 3, down from $197.82 million the day prior. Since their July launch, these ETFs have accumulated net outflows of $561.05 million. Ethereum (ETH) was trading at $2,381 at press time.
Sui will soon integrate native USDC and CCTP, boosting its blockchain’s liquidity and cross-chain transaction capabilities.
Sui Network, a layer-1 blockchain, is set to integrate native USD Coin (USDC) and the Cross-Chain Transfer Protocol in an effort to enhance its scalability and interoperability.
In a press release on Sept. 17 shared with crypto.news, the Sui team said the integration will allow the network’s users and developers to leverage USDC for various digital dollar-backed financial products, including applications in decentralized finance, gaming, decentralized physical infrastructure networks, and e-commerce.
“Sui will collaborate with ecosystem apps to transition liquidity from bridged USDC to native USDC gradually, while Wormhole’s Portal bridge will continue operating as usual.”
Sui
Circle to help builders deliver blockchain utility
Prior to the launch of native USDC, the Ethereum-bridged version will be renamed “wUSDC” on block explorers, the press release reads. Circle’s chief product officer Nikhil Chandhok expressed enthusiasm about supporting Sui’s developer and user community, saying Circle “will help more builders deliver blockchain based utility and contribute to efficient payment experiences on Sui and across other ecosystems.”
The addition comes just a week after Grayscale opened its Sui Trust to qualified investors, providing exposure to Sui and other cryptocurrencies, and further expanding Grayscale’s product offerings.
Sui, currently the 27th largest cryptocurrency by market capitalization with $2.4 billion, has seen a rebound in its total value locked. After a significant drop from $1.08 billion in May 2024 to $516 million in early August, Sui’s TVL has increased to over $700 million, making it the 10th largest chain by total value locked, per data from DefiLlama.
Spot Bitcoin ETFs have started this week on a positive note, while spot Ether ETFs continued their third consecutive trading day of negative flows.
Data from SoSoValue shows that the 12 spot Bitcoin exchange-traded funds in the U.S. recorded $61.98 million in inflows on Aug. 19, representing a 72% increase compared to the net inflows of $36.01 million on the same day.
BlackRock’s IBIT led the lot with $92.7 million, bringing its total inflows since launch to $20.48 billion. Fidelity’s FBTC followed with modest inflows of $3.9 million. These funds were the only ones to record a second consecutive day of inflows.
Market data on inflows/outflows for spot Bitcoin ETFs as of Aug. 19 | Source: SoSoValue
Bitwise’s BITB and Invesco Galaxy’s BTCO recorded net outflows of $25.7 million and $8.8 million, respectively, offsetting part of the gains seen by these investment vehicles on Aug. 19. Grayscale’s GBTC saw no flows on the day, marking the first day this has occurred since its launch. The investment product has been recording continuous outflows, totaling $19.64 billion since its inception.
The remaining seven Bitcoin ETFs also remained neutral as the cryptocurrency market anticipated a correction. The cumulative spot BTC ETF inflows have now surpassed the $17.4 billion mark.
Data from crypto.news shows that the global crypto market capitalization jumped by 2.4% in the past 24 hours, currently standing at $2.24 trillion. The total 24-hour trading volume also surged, hovering around $79.5 billion. Bitcoin (BTC) rose by 4.2% over the past 24 hours, trading at $60,937 at the time of writing.
Ether ETFs record $13.5m in outflows
In contrast, the nine Ethereum ETFs collectively saw $13.52 million in outflows on Aug. 19, marking the third consecutive trading day of outflows.
Leading the outflows was Grayscale’s ETHE, with ongoing outflows of $20.3 million, contributing to a total outflow of $2.43 billion since its inception. Meanwhile, Grayscale Bitcoin Mini Trust and Bitwise’s ETHW were the only offerings to record modest inflows of $4.9 million and $1.9 million on the day. The remaining six Ethereum ETFs saw no activity on the day.
Trading volume for Ether ETFs dropped to $124 million, significantly lower than the $185 million seen the previous trading day. These funds have experienced a cumulative net outflow of $433.62 million to date. As of press time, Ethereum (ETH) soared by 2.3%, trading at $2,673.
Spot Bitcoin exchange-traded funds in the United States saw positive flows again, in contrast to spot Ethereum ETFs, which saw substantial outflows, ending their three-day run of gains.
Data from SoSoValue reveals that on Aug. 15, the twelve U.S. spot Bitcoin ETFs registered a collective inflow of $11.11 million, ending their short-lived negative flow witnessed the previous day.
Fidelity’s FBTC led the charge with inflows of $16.2 million followed by Grayscale’s Bitcoin mini trust and Biwise’s BITB which saw $13.7 million and $6.2 million inflows, respectively. Grayscale’s GBTC was the only offering to see outflows of $25 million on the day, bringing its total net outflows to $19.57 billion since its launch. The remaining seven Bitcoin ETFs reported no changes in their inflows or outflows for the day.
Spot Ether ETFs see substantial outflows
Conversely, the nine Ethereum ETFs collectively saw $39.21 million in outflows on Aug. 15, a flip from the previous daily inflows of $10.8 million and $24.3 million. Leading the outflows was Grayscale’s ETHE, with continued outflows of $42.5 million and accumulating total outflows of $2.38 billion since its inception.
Meanwhile, Fidelity’s FETH and BlackRock’s ETHA saw modest inflows of $2.5 and $0.8 million, respectively, on the day. The remaining seven Ethereum ETFs showed no significant activity. Despite these outflows, Ether ETFs experienced a jump in trading volume, totaling $240.58 million, higher than the previous day. These funds have seen a cumulative net outflow of $405.11 million to date.
Leveraged fund attracts investor focus
Meanwhile, the U.S. Securities and Exchange Commission has recently given the green light for the launch of a new leveraged fund, MSTX, by Defiance, a U.S.-based ETF issuer. The fund aims to provide investors with 175% daily long exposure to MicroStrategy, enabling them to gain leveraged exposure to innovative companies without the need for a margin account.
HEAT WAVE: Here’s a look at the most volatile ETFs in the US and how $MSTX is estimated to begin life today at the top spot. But look for this “volatility barrier” to be broken in the future as issuers look to push ‘hot sauce’ envelope, especially if $MSTX finds an audience. pic.twitter.com/rQQJL3ZUL9
On its debut trading day, MSTX generated $22 million in volume, which might set a new record, according to Bloomberg’s Senior ETF Analyst, Eric Balchunas.
Despite this development and the introduction of IBIT, another ETF, the broader crypto market has shown a tepid response. Most major cryptocurrencies have remained stable or recorded minimal increases. Bitcoin (BTC) had only gained 0.77%, while Ethereum (ETH) managed an even lower increase of 0.16%, per data from crypto.news.
Bitcoin dipped temporarily under the $57,000 mark but has since managed to climb back up to $58,442 at the time of writing. Aptos (APT) and Celestia (TIA) have taken the biggest hit among the top ten by market cap on the daily timeframe and are down 4.9% and 3.8%, respectively.
It remains to be seen if the bulls or the bears get the upper hand now, but analyst Rekt Capital noted in an Aug. 15 post on X that Bitcoin is currently retesting the bottom of its trading channel as support, indicated by a green circle on the chart. They also emphasized that maintaining price stability at this level could favorably impact the cryptocurrency’s potential for a future upward trend continuation.
Bitcoin could potentially retest its all-time high later this year should the U.S. economy avoid a recession, Grayscale Research says.
Despite the recent roller-coaster of volatility in the crypto market, analysts at Grayscale Research forecast that prices could climb higher in the coming months.
In an Aug. 8 research report, Grayscale analysts suggested that if the U.S. economy achieves a “soft landing” and avoids recession, token valuations could rebound, with Bitcoin (BTC) potentially revisiting its “all-time high later this year.”
“Shifts in the U.S. political landscape around the crypto industry may also reduce downside risks to valuations compared to past cycles.”
Grayscale
The firm pointed out that even in a weaker economic environment, downside risks may be “more limited” than in past cycles, citing steady demand from newly listed U.S. exchange-traded products and subdued altcoin returns as mitigating factors.
Looking ahead, market stability will hinge on upcoming macroeconomic data and central bank policies, Grayscale says, adding that events like the Federal Reserve’s September meeting and the Jackson Hole Symposium will likely to play a key role in shaping the environment.
Bitcoin wins in any scenario
Regardless of the scenario, Grayscale Research remains optimistic, suggesting that even a period of economic weakness could bolster the long-term investment case for Bitcoin, particularly in light of the ongoing “undisciplined approach” to monetary and fiscal policy.
As of press time, Bitcoin is trading above $60,000, having rebounded from a Monday dip that briefly saw its price fall below $50,000, per data from crypto.news. Bitcoin has thus far held its $50,000 support level, fueling speculation that whales are continuing to accumulate at current prices, which could signal potentially higher moves later on, especially as Bitcoin typically trades within a relatively low price range during September and October.
Grayscale Investments has launched its Bitcoin Mini Trust as a spot Bitcoin exchange-traded product on NYSE Arca, beginning trading today.
Crypto management giant Grayscale announced in a July 31 press release that its Grayscale Bitcoin Mini Trust is now available for trading on NYSE Arca.
Trading under the ticker BTC as a spot Bitcoin (BTC) exchange-traded product, the vehicle has a fee of 0.15%, which is one of the lowest fees among competing Bitcoin ETPs. Grayscale says it plans to initially seed the fund by transferring 10% of the Bitcoin from its Bitcoin ETF product, Grayscale Bitcoin Trust (GBTC).
Most Bitcoin exchange-traded products currently on the market have fees around 0.20%, according to data from Farside Investors.
As shown above, Grayscale’s first Bitcoin ETP, GBTC, has the highest fee among competing products, at 1.5%.
The press release notes that Bitcoin starts trading on NYSA Arca with a share price of $5.84 and $1.7 billion in assets under management.
Commenting on the launch, Grayscale’s senior managing director David LaValle claimed that the product will help “further lower the barrier to accessing Bitcoin in a SEC regulated [sic] investment vehicle.” The company noted that Grayscale Bitcoin Mini Trust — in contrast to most mutual funds or ETF products — is not registered under the Investment Company Act of 1940 and is not regulated by it.
Grayscale made a similar move with its spot Ethereum ETPs. Last week, after the Grayscale Ethereum Trust (ETHE) was converted to a spot ETP (retaining its relatively high 2.5% fee), the firm launched the Ethereum Mini Trust (under the ticker ETH), which also boasts a relatively low fee 0.15%.
U.S. spot Ethereum exchange-traded funds have had a mixed start this week, with net inflows into most ETFs overshadowed by significant net outflows from Grayscale’s converted fund, ETHE.
Data from Farside Investors shows that spot Ethereum (ETH) ETFs saw just over $162 million in total outflows on Friday, July 26, marking the third consecutive day of net negative flows. In contrast, spot Bitcoin (BTC) ETFs recorded $51.8 million in net inflows on the same day, continuing a trend of positive flows for three days straight.
The first ever spot Ethereum ETFs in the U.S. — nine products from eight issuers — started trading on Tuesday, July 23, following their approval by the Securities and Exchange Commission in May.
ETH ETFs’ first week
In the first week of trading, most of the newly launched Ethereum ETFs saw positive inflows, except for Grayscale’s ETHE, which experienced $1.51 billion in net outflows. ETHE’s outlfows have resulted in an overall weekly outflow of $341.8 million for the ETFs.
BlackRock’s ETHA led the pack in terms of inflows, generating $442 million worth of net inflows, followed by Bitwise’s ETHW with $265.9 million and Fidelity’s FETH with $219.4 million.
VanEck’s ETHV and Franklin Templeton’s EZET saw smaller inflows of $35.4 million and $23.3 million, respectively. 21Shares’s CETH received an inflow of $7.5 million only on launch day and saw zero inflows on the following three trading days.
Ethereum ETF flows in first week of trading | Source: Farside
Grayscale’s two Ethereum ETFs, explained
Major crypto asset manager Grayscale has introduced two spot Ethereum funds to the markets this past week, trading under the tickers ETHE and ETH. The Grayscale Ethereum Trust, ETHE, was initially launched in 2017 as a private placement, meaning it was only available to select investors and institutions in the U.S. Since 2019, the shares of the Ethereum Trust have been publicly traded OTC under the ticker ETHE. OTC trading of ETHE came with a 6-month holding period. However, since ETHE was converted to a spot Ethereum ETF last week, investors gained the ability to sell their holdings more freely.
The 2.5% management fee for ETHE — which is relatively quite high compared to fees of 0.25% or less from other ETF issuers — has driven investors to switch to competing products with lower fees, spurring the outflows from Grayscale’s fund. This situation is very much similar to what happened with Grayscale’s Bitcoin Trust (GBTC), which was also converted to a BTC ETF in January and then saw over $5 billion in outflows in its first month post-conversion.
Likely in expectation of this dynamic, Grayscale launched another ETF product this week, the Ethereum Mini Trust (under the ticker ETH). The new product boasts a competitive fee of 0.15%, positioning it as one of the most affordable spot Ethereum funds in the U.S. In contrast to ETHE, Grayscale’s Mini Trust saw inflows every trading day this past week, for a total of $164 million.
Grayscale’s ETHE, which held around $10 billion in assets (2.9 million ETH) before its conversion to an ETF, allocated $9.2 billion to its ETHE ETF product and just over $1 billion to its ETH fund.
The ETHE outflows, coupled with a more than 6% drop in the price of Ethereum since the ETFs launched, have reduced Grayscale Ethereum Trust’s assets under management to approximately $7.46 billion (2.28 million ETH), as reported on its fund page.
Ethereum ETFs vs Bitcoin ETFs: first week
It’s still early days, and if Grayscale’s spot Bitcoin ETF pattern is an indicator, the net outflows for ETHE might slow down. However, with an average net outflow of around $378 million per trading day this past week, ETHE’s assets could be depleted within a month.
In terms of the Grayscale effect, a significant difference between GBTC and ETHE is that GBTC shares were trading at a discount to the price of spot BTC when the GBTC ETF product launched. In contrast, ETHE’s “discount” — or the difference between the price of an ETHE share and the spot price of ETH — had closed by the time the spot Ethereum ETFs went live, partly explaining the stronger incentive to exit the fund.
Additionally, Bitcoin’s price had surged considerably before the spot Bitcoin ETFs launch in January, nearly doubling after approval expectations increased in October. In contrast, the price of Ethereum has been declining, falling more than 15% since the spot Ethereum ETFs were first approved on May 23.
“The major difference to me is the comparatively massive ETHE outflow. I think GBTC didn’t have that on day one because it was still at a meaningful discount when it launched,” noted James Seyffart, a Bloomberg ETF analyst, when comparing the outflows of the two products.
The the nine newly launched Ethereum ETFs saw total net inflows of $106.7 million on their first trading day, July 23, compared to $628 million in inflows for Bitcoin ETFs on their debut, according to data from SoSoValue
In terms of trading volume, the ETH ETFs saw around $1.1 billion in trades on their first day, while BTC ETFs saw $4.66 billion in trading volume on their inaugural day.
Throughout the first week, Ethereum ETFs generated a total trading volume of approximately $4.05 billion, compared to $7.85 billion for Bitcoin ETFs in their initial week.
Analysts anticipate that spot Ethereum ETFs will attract inflows ranging from 6% to 48% of those seen by Bitcoin ETFs in the first six months. This estimate suggests total inflows into Ethereum ETFs could reach between $1 trillion and $7.5 trillion by late January 2025.
At the time of writing, ETH, the second-largest cryptocurrency, was trading at $3,280. Its market cap is around $393 billion, with a 24-hour trading volume near $14.4 billion.
The Securities and Exchange Commission has given the green light for spot Ethereum ETFs, which will start trading on Tuesday.
SEC has approved spot Ethereum ETFs
It approved eight new ETH ETFs from companies like Grayscale, VanEck, Bitwise, Franklin Templeton, and BlackRock. It also allowed the conversion of the Grayscale Ethereum Trust (ETHE), which has over $9.9 billion in assets, into a spot ETF.
Therefore, many ETF investors will likely start researching the best ETF to buy for maximum returns.
Like in Bitcoin, most investors will likely opt for the iShares Ethereum Trust (ETHA) or the Fidelity Ethereum Fund (FETH). BlackRock and Fidelity lead in Bitcoin ETF with over $22 billion and $12 billion in assets, respectively.
Grayscale’s ETH vs BlackRock’s ETHA
However, looking at the fee schedule, we see that the Grayscale Ethereum Mini Trust (ETH) is a superior Ethereum ETF to BlackRock’s ETHA.
These funds are similar to a large extent in that they are built to track the price of Ethereum and use the same custodian, Coinbase.
However, the funds charge a different fee for what is essentially the same product. ETH will start with a free starting fee for six months and then increase to 0.15% after the waiver period.
BlackRock’s ETHA will start with a waiver fee of 0.12% and a post-waiver fee of 0.25%. Invesco’s QETH will not have a fee waiver period, while Fidelity’s FETH’s fee will increase to 0.25% in January.
What are we expecting today for the Ethereum ETFs?
We expect them to begin trading tomorrow. That means we should see a bunch of filings on SEC site today that say the ETFs’ prospectuses have gone “effective”. Likely after or around market close. Here are the race entrants: pic.twitter.com/AkBxEjBRvv
A 0.25% expense ratio is relatively small, and most people will not feel it since a $100,000 investment will be charged $250 a year. A similar amount in Grayscale’s ETH will cost only $150. All factors constant, ETHA’s fees will be $2,500 in a decade while ETH’s will be $1,500.
Morningstar addressed the fee spread recently when it compared the SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 (VOO) ETFs. The two funds track the same index, but SPY has an expense ratio of 0.09%, while VOO charges 0.03%. The analyst wrote:
“VOO earns a top rating of Gold, while SPY earns the next best rating of Silver. The differences may be minimal, but there’s no reason to leave change on the table. VOO charges 0.03%, while SPY charges 0.09%. With all else equal, the fund with the lower fee is more aligned with investors’ best interests.”
As crypto.news has previously covered, a better deal for retail investors would be to consider the opportunity cost of buying an ETF or Ether itself. When buying Ether, once a transaction cost is paid, users can then earn staking rewards, which are currently at 3.50%. In this case, investing $100,000 in Ether yields $3,500 in a year and $35,000 in a decade.
Động thái này nhằm mục đích đồng bộ hóa tốt hơn cổ phiếu của GBTC với giá Bitcoin thực và giới thiệu một cơ chế hợp lý để các nhà đầu tư tạo hoặc mua lại cổ phiếu một cách dễ dàng.
Grayscale, một công ty quan trọng trong lĩnh vực quản lý tài sản kỹ thuật số, đã bày tỏ sự hào hứng về khả năng chuyển đổi Grayscale Bitcoin Trust (GBTC) thành Bitcoin ETF. Động thái này có thể loại bỏ mức chiết khấu 8,09% hiện tại tương đương khoảng 1,89 tỷ USD, điều chỉnh giá GBTC gần hơn với giá trị thực của Bitcoin, mang lại lợi ích đáng kể cho các nhà đầu tư.
Giám đốc pháp lý của công ty, Craig Salm và giám đốc tài chính, Edward McGee, đã tiết lộ chi tiết. Đang chờ phê duyệt từ Ủy ban Giao dịch Chứng khoán Hoa Kỳ, GBTC sẽ chuyển từ nền tảng hiện tại, OTCQX, sang sàn giao dịch NYSE Arca quý giá. Động thái này nhằm mục đích đồng bộ hóa tốt hơn cổ phiếu của GBTC với giá Bitcoin thực và giới thiệu một cơ chế hợp lý để các nhà đầu tư tạo hoặc mua lại cổ phiếu một cách dễ dàng.
Nhà phân tích ETF Eric Balchunas từ Bloomberg đã quan sát thấy sự phụ thuộc đáng chú ý vào việc cứu trợ Quy định M (Reg M). Anh ấy đề cập đến các cuộc trò chuyện trước đây cho thấy rằng SEC có thể sử dụng Reg M để có thể cản trở hoặc trì hoãn các thủ tục cụ thể, mặc dù anh ấy từ chối xác nhận điều này. Balchunas lưu ý rằng thời điểm hấp dẫn của Quy định M được đề cập ngay sau cuộc họp của Grayscale với SEC, ám chỉ tầm quan trọng hoặc tác động tiềm tàng của nó trong các cuộc thảo luận của họ.
Với Bitcoin ( BTC ) hiện có giá 39.481 USD và khối lượng giao dịch tăng đột biến cho thấy sự quan tâm của nhà giao dịch tăng cao, triển vọng về Bitcoin ETF giao ngay đảm bảo cho các nhà đầu tư thể hiện chính xác hơn giá trị của Bitcoin thông qua GBTC và thiết lập một con đường an toàn hơn cho các nhà đầu tư tổ chức tham gia vào Bitcoin. . Sự phát triển này đã khiến giá trị Bitcoin tăng 3% trong 24 giờ qua, kèm theo sự gia tăng đáng kể về khối lượng giao dịch, báo hiệu sự quan tâm rộng rãi.
Trong một bài đăng ngày 28 tháng 11 X (trước đây là Twitter), nhà phân tích James Seyffart của Bloomberg ETF cho biết SEC đã trì hoãn quyết định của mình đối với các đơn đăng ký sớm hơn 34 ngày so với thời hạn ra quyết định ngày 1 tháng 1 năm 2024. Seyffart và đồng nghiệp Eric Balchunas đã đặt 90% tỷ lệ cược vào việc phê duyệt Bitcoin ETF tại chỗ trước ngày 10 tháng 1 năm 2024 và sự chậm trễ kép “tất cả đều xác nhận với tôi rằng đây có thể là một động thái nhằm xếp hàng mọi người nộp đơn để có được sự chấp thuận tiềm năng vào tháng 1”. Seyffart nói.
Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
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