Bitcoin ETF

Bitcoin, Ethereum ETFs record joint outflows for first time

Published

4 months ago

August 3, 2024

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Spot Bitcoin and Ethereum exchange-traded funds in the U.S. recorded joint outflows for the first time on Aug. 2.

Bitcoin ETFs see outflows of $237.4m

The 11 spot Bitcoin (BTC) ETFs in the U.S. experienced a net outflow of $237.4 million at the end of the trading day on Friday, Aug. 2. This is the largest outflow from these investment products since the beginning of May when they experienced $563.8 million in outflows.

Bitcoin ETF Flow (US$ million) – 2024-08-02
TOTAL NET FLOW: -237.4
(Provisional data)
IBIT: 42.8
FBTC: -104.1
BITB: -29.4
ARKB: -87.7
BTCO: 0
EZBC: 0
BRRR: 0
HODL: -23
BTCW: 0
GBTC: -45.9
BTC: 9.9
For all the data & disclaimers visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) August 3, 2024

Interestingly, the largest outflows on that day were seen by the Fidelity Wise Origin Bitcoin Fund (FBTC), losing $104.1 million in outflows, followed by Ark and 21Shares’ ARKB with $87.7 million in outflows.

This was followed by Grayscale’s GBTC, which continued its downward movements, losing $45.9 million in outflows yesterday. Bitwise’s BITB and VanEck’s HODL also saw $29.4 million and $23 million in outflows, respectively.

BlackRock’s IBIT and Grayscale’s newly launched Grayscale Bitcoin Mini Trust were the only Bitcoin ETFs to experience inflows yesterday of $42.8 million and $9.9 million, respectively. The remaining spot BTC ETFs remained neutral.

Overall, the week ended negatively, with total withdrawals from all spot BTC ETFs at approximately $80.68 million.

According to SoSoValue data, the total daily trading volume for these financial instruments was $2.34 billion on Friday, Aug. 2, down from $2.91 billion recorded on Thursday, Aug. 1, but still much higher than the $1.37 billion recorded on Wednesday, July 31.

Ethereum ETFs also log outflows of $54.3m

The nine U.S. spot Ethereum (ETH) ETFs also recorded a net outflow of $54.3 million on Aug. 2, led by Grayscale’s ETHE with $61.4 million in outflows.

Ethereum ETF Flow (US$ million) – 2024-08-02
TOTAL NET FLOW: -54.3
(Provisional data)
ETHA: 0
FETH: 6
ETHW: 0
CETH: 0
ETHV: 0
QETH: 0
EZET: 1.1
ETHE: -61.4
ETH: 0
For all the data & disclaimers visit:https://t.co/HfqQHgwr3Z
— Farside Investors (@FarsideUK) August 3, 2024

Fidelity’s FETH and Franklin’s EZET were the only ETFs to record inflows, at $6 million and $1.1 million, respectively. These were significantly less than ETHE’s outflows and could not offset the overall loss. The remaining Ether ETFs saw no net flow on that day.

The past week was even harsher for ETH ETFs, with substantial withdrawals of $169.4 million over the last five trading days.

Per data from SoSoValue, the total daily trading volume for these spot Ethereum ETFs was $438.61 million on Friday, Aug. 2. That’s much higher than the $331.11 million recorded on Thursday, Aug. 1, but still lower than $472.5 million on Wednesday, July 31.

The joint outflows from spot BTC and ETH ETFs on Aug. 2 marked a flip from the scenario on Aug. 1, when both ETF products saw joint positive inflows for the first time since the launch of the nine spot Ether ETFs on July 23.

Meanwhile, the latest outflows from these investment products coincided with a 4.5% drop in the global cryptocurrency market cap over the last 24 hours, according to data from CoinGecko.

Bitcoin’s price decreased by 4.4% and is now priced at $62,000. Meanwhile, Ethereum saw a larger decline of 5% and is trading at approximately $3,000.

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Bitcoin ETF

Bitcoin ETF options coming ‘soon’ following CFTC clearance

Published

6 days ago

November 17, 2024

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The U.S. Commodity Futures Trading Commission issued an advisory through its Division of Clearing and Risk stating it would no longer have a role in clearing Bitcoin ETF options.

The agency is transferring this responsibility to the Options Clearing Corporation, according to a prepared statement.

“[..] In light of relevant precedents in the courts, it is substantially likely these spot commodity ETF shares would be held to be securities. Therefore, DCR’s position is the listing of these shares on SEC-registered national securities exchanges does not implicate the CFTC’s jurisdiction.”
CFTC staff advisory.

According to the commission, the OCC, which serves as the “sole issuer of all equity options” in the U.S., now holds the final authority to decide whether these options will be listed.

Experts believe the OCC’s approval could be imminent, with ETF analyst Eric Balchunas predicting it will come “very soon.”

Meanwhile, market commentator Andrew said the CFTC’s move came much quicker than expected, as approval was initially anticipated by late Q1 2025, but this decision could speed things up.

Bitwise Invest’s Jeff Park suggested that while he was optimistic about the chances of a year-end approval, he wouldn’t “short the odd.”

The advisory follows the SEC’s approval last month, which cleared applications from the New York Stock Exchange and the Chicago Board Options Exchange to list and trade Bitcoin ETF options.

Options contracts give investors the right, but not the obligation, to buy or sell an underlying asset at a specified price before a set date. The SEC believes options trading could bring “better price efficiency” and “less volatility” to Bitcoin ETFs, helping to stabilize the market while making it more transparent and efficient overall.

Bitcoin advocates view the approval of Bitcoin ETF options as a game-changer, bringing more liquidity to the market. See below.

Earlier this year, Grayscale CEO Michael Sonnenshein advocated for the swift approval of Bitcoin ETF options, saying that these offerings could pull in more players, like broker-dealers, and deepen Bitcoin’s ties with traditional finance.

Crypto influencer Mario Nawfal, in a recent social media post, highlighted the buzz around Bitcoin ETF options, saying institutional investors are “drooling” over the opportunities.

BITCOIN SPOT ETF OPTIONS GET THE GREEN LIGHT
The CFTC approved Bitcoin spot ETF options, and institutional investors are drooling.
⁰BlackRock’s Bitcoin ETF will trade as “IBIT,” and everyone’s hyped about more “big fish” jumping in.
BTC spiked to $91,000 after a dip to $87,100… pic.twitter.com/qJCtH7hJpm
— Mario Nawfal’s Roundtable (@RoundtableSpace) November 16, 2024

“This is your mainstream finance world, now featuring Bitcoin,” he wrote.

Bitcoin reacted positively to the development, breaking past the $91,000 resistance level it struggled with over the past two days. At press time, the flagship cryptocurrency was trading at $91,293, up 2.4%.

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Bitcoin

Ether (ETH) ETF Inflows Hit Record, Bitcoin ETF Inflows Soar as BTC Price Eyes $90K

Published

2 weeks ago

November 12, 2024

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“Assets in the US spot bitcoin ETFs are now up to $84b, which is 2/3 of the way to what gold ETFs have, all the sudden there’s a decent shot they surpass gold before their first birthday (we predicted it would take 3-4yrs),” Eric Balchunas, a senior analyst at Bloomberg, said in a post on X.

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Bitcoin

Bitcoin (BTC) ETFs See Record $1.3B Inflows on Trump Win, Fed Rate Cuts

Published

2 weeks ago

November 8, 2024

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BTC trades above $76,000 in Asian morning hours Friday, up nearly 10% over the past week. In line with analyst expectations, the Federal Reserve cut rates by 25 basis points on Thursday in a move that typically supports risk assets like bitcoin by increasing liquidity and weakening the dollar.

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