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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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Bitcoin ETF

Bitcoin ETF options coming ‘soon’ following CFTC clearance 

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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.

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

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

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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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