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Bitcoin ETF

More demand for BTC than ETH for now

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BlackRock’s head of digital assets, Robert Mitchnick, said Bitcoin ETFs currently draw more investor demand than Ethereum funds.

The Bitcoin 2024 conference in Nashville, which is expected to attract 20,000 crypto enthusiasts, comes as exchange-traded funds now offer exposure to the largest cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH).

Spot ETH ETFs are the new market entrants, but spot BTC ETFs have traded since January and amassed over $60 billion in assets under management, per SoSoValue. Mitchnick remarked that it’s still early, and flows have yet to indicate whether investors will reallocate capital from Bitcoin funds into Ethereum ETFs. 

Spot Ether ETFs achieved 79% of day one total flows recorded by spot Bitcoin products. Data including Grayscale outflows slashed that number to 16% as investors flocked out of the firm’s ETHE vehicle. Ethereum responded with a price slump and was down up to 7% on July 25.

BlackRock at Bitcoin 2024: More demand for BTC than ETH for now - 1

Similar flows occurred in January when spot BTC ETFs launched. Investors also pivoted away from Grayscale converted GBTC at the time. If the pattern continues to repeat, markets may see days or even weeks of Grayscale outflows. Sell fatigue might then set in, and total flows could flip positive if spot ETH ETFs capture Wall Street demand. 

Nevertheless, many within the crypto industry opine that ETFs for Bitcoin and Ethereum incentivize more U.S. crypto funds to launch soon. Issuers like VanEck have filed for a Solana (SOL) Trust designed similarly to existing spot ETFs. 

Speaking with Bloomberg’s James Seyffart, Mitchnick said BlackRock does not currently see demand for crypto ETFs beyond Bitcoin and Ethereum. 





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BlackRock’s IBIT records largest outflow day as Bitcoin ETFs log third consecutive day of outflows

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On Nov. 5, BlackRock’s spot Bitcoin exchange-traded fund, BITB, recorded its largest net outflow day since inception, with $44.2 million leaving the fund.

Since its launch in January, BlackRock’s BITB has experienced only six days of outflows, with the previous largest single-day outflow of $36.9 million on May 1.

According to data from Farside Investors, the 12 spot Bitcoin ETFs recorded a net outflow of $116.8 million on Nov. 5, extending their outflow streak to three consecutive trading days. However, these outflows were significantly lower than the $541.1 million recorded on Nov. 4, which marked the second-largest outflow day for these investment products.

Across the sector, outflows were dominated by Fidelity’s FBTC, which saw $68.2 million withdrawn, leading the day’s redemptions. Other funds also posted notable outflows, including ARK Invest and 21Shares’ ARKB, which saw $12.5 million in redemptions, Franklin Templeton’s EZBC with $6 million, VanEck’s HODL with $3.9 million, and Valkyrie’s BRRR, which reported $1.3 million in net outflows.

In contrast, Biwise’s BITB was the only spot Bitcoin ETF to log net inflows, with $19.3 million entering the fund. Grayscale’s GBTC and several other spot Bitcoin ETFs saw zero flows for the day.

Bitcoin defies ETF outflows, surges to record high

Despite ETF outflows extending for a third day, Bitcoin’s price rose sharply overnight.

CoinGecko data shows Bitcoin (BTC) reaching an unprecedented $75,000 in a potential reaction to election news that former President Donald Trump might be gaining momentum in early voting.

The flagship cryptocurrency later retreated slightly, trading up 8.7% at $74,563 at the time of reporting.

Bitcoin’s performance has remained strong, especially following its previous all-time high of $73,797 set on March 14, though it has mostly traded below $70,000 for much of the year.

While Bitcoin ETFs experienced significant outflows, U.S.-based spot Ethereum ETFs had a quieter day, registering zero net flows on Nov. 5, according to Farside Investors. However, Ethereum (ETH) mirrored Bitcoin’s upward price momentum, gaining 6.7% to trade just above $2,600.

According to CoinGecko data, the global crypto market capitalization increased by 6.6% over the past day, reaching $2.58 trillion.



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Ethereum ETFs see $10m patronage from Michigan State

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Ethereum ETFs recorded their first State Pension Fund purchase, as Michigan acquired shares from two funds offered by Grayscale.

According to a Securities and Exchange Commission filing, the State of Michigan became a top five holder of Grayscale’s spot Ethereum (ETH) exchange-traded funds. Michigan’s Form 13F disclosed that the state owns a cumulative $10 million of Grayscale’s ETH and ETHE products.

Bloomberg ETF expert Eric Balchunas noted that Michigan held more shares in ETH ETFs than in its spot Bitcoin (BTC) ETF holdings.

Not only did Michigan’s pension buy Ether ETFs but they bought more then they did of Bitcoin ETFs, $10m vs $7m. This despite BTC being up a ton and Ether in the gutter. Pretty big win for ether which could use one.

Eric Balchunas, senior Bloomberg ETF analyst

The crypto community expressed mixed reactions to this first state fund investment in ETH products. Some praised the move as bullish for Ethereum, while others criticized Michigan’s government investors for allocating less to Bitcoin ETFs.

Rug Radio creator Daito Yoshi likened the move to a strategic business decision. Yoshi suggested on X that other government-backed investors may also deploy capital to ETH products.

I wonder where other institutions will choose to allocate in order to catch up with BTC gains once we hit $100K and they realize they’ve missed the BTC boat.

Daito Yoshi, Rug Radio creator

Bitcoin and Ethereum ETFs have been trading for months, with BTC funds as clear leaders in the crypto investment space. Over $70 billion is held in Bitcoin ETFs compared to less than $10 billion in Ethereum funds.

However, institutional interest in crypto ETFs has generally grown. Traditional finance firms have invested about $13 billion on Bitcoin ETF shares alone this year.



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Bitcoin ETFs record total daily outflow of $54.94 million as BTC hovers at $69,000

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The U.S. Bitcoin spot exchange-traded funds have recorded a daily outflow of $54.94 million as of Nov. 1, and Ethereum follows suit with a $10.93 million outflow.

The latest data from SoSoValue shows that the U.S. Bitcoin (BTC) spot ETFs exhibited a $54.94 million outflow on Nov. 1.

The one-day net inflow of IBIT stood at $0. According to the data, the cumulative net inflow of IBIT stood at $26.14 billion.

On the other hand, GBTC exhibited a $5.51 million outflow, which has brought its cumulative net inflow to -$20.16 billion.

FBTC, ARKB, and BITB showcased a net outflow of $25.64 million, $24.13 million, and $5.64 million, respectively.

Bitcoin ETFs record total daily outflow of $54.94 million as BTC hovers at $69,000 - 1
US BTC Spot ETF inflow data from SoSoValue

Grayscale Bitcoin Mini Trust is the only one that enjoyed an inflow of $13.51 million. This has brought its cumulative net inflow as of Nov. 1 to $502.07 million.

The majority of the Bitcoin ETFs reported outflows primarily rather than inflows. The cumulative total net inflow of all Bitcoin ETFs came around $24.15 billion as of Nov. 1.

Ethereum ETFs record $10.93 million in outflow

In comparison to Bitcoin ETFs, Ethereum (ETH) ETFs also recorded a negative outflow date with $10.93 million. The cumulative total net inflow also stood at -$491.44 million as per SoSoValue data.

Interestingly, ETHE is the only Ethereum ETF that recorded an outflow of $11.43 million. This brought its cumulative net inflow to -$3.13 billion.

Other ETFs, including ETHA, ETH, FETH, ETHW, ETHV, and EZET, stood at $0 with no inflow or outflow.

QETH, on the other hand, enjoyed over $502,000 in inflow, bringing its cumulative net inflow to $25.82 million.

The poor inflow comes when the overall crypto market cap has plunged to $2.32 trillion. Bitcoin price has dropped to the $69,400 level, while Ethereum has gone down to the $2,490 level at press time.



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