Arrangement: Fairy, ChainCatcher
Editor: Marco, ChainCatcher
Crypto Spot ETF Performance Last Week
From August 19 to 22, global Bitcoin spot ETF holdings increased by 2,935 BTC, ending three consecutive weeks of reductions. In addition to Grayscale, other US ETFs increased their holdings by 4,681 BTC, becoming the main inflow force. Grayscale ETF decreased by 1,422 BTC, and the outflow was halved compared with the previous week.
Data from @Phyrex_Ni
US Bitcoin spot ETF returns to net inflow
Last week, the U.S. Bitcoin spot ETF had net inflows for five consecutive days, with a total inflow of $506.4 million. On Friday, the Fed Chairman delivered a policy adjustment speech, with a large net inflow of $252 million in a single day.
Only two ETFs experienced net outflows last week:
InvescoETF BTCO had a net outflow of $3.1 million and a net asset value of $0.2 billion;
Grayscale ETF GBTC had a net outflow of $86.6 million, and its net asset value dropped to $14.5 billion;
Source: Farside Investors
US Ethereum spot ETF saw net outflow of $44.5 million
Last week, the U.S. Ethereum spot ETF had a net outflow of $44.5 million, mainly due to a net outflow of $118 million from Grayscale ETHE.
BlackRock ETHA has accumulated more than $1 billion in net inflows, becoming the first of the 11 issuers to reach this milestone. However, BlackRock ETFA's purchasing power continued to weaken, with only $26.8 million in net inflows on August 20, and no funds flowed on the remaining four days. 21 Shares' CETH and Invesco's QETH had zero inflows and outflows throughout the week.
Source: Farside Investors
Hong Kong crypto ETF liquidity drops further
Last week, the liquidity of Hong Kong crypto ETFs further declined. The Bitcoin spot ETF had a net inflow of 247.43 BTC on August 22, and no capital flow at other times. At the same time, the Ethereum spot ETF had no flow.
In terms of daily trading volume, only one day's trading volume exceeded HK$10 million, and the daily trading volume of most ETFs did not exceed HK$1 million. Compared with the previous average daily trading volume of about HK$20 million, liquidity has dropped significantly.
In addition, the total asset management scale of Hong Kong Bitcoin ETF exceeds HK$2 billion. The total asset management scale of the two Bitcoin ETFs under China Asset Management and Harvest Global ETFs is HK$1.337 billion, accounting for about 63%. The total asset management scale of another spot Bitcoin ETF is about HK$776 million, accounting for about 42%.
Data: SoSoValue
An overview of crypto ETF activity last week
The SEC rejected two Solana Spot 19b-4 filings submitted by Cboe BZX.
According to people familiar with the matter, 19b-4 documents are filed by exchanges on behalf of issuers. If these documents are published in the Federal Register, the SEC approval process will begin. Another important document, the S-1 registration statement, is filed by issuers and does not have any deadline. However, because the SEC rejected the 19b-4 forms, they have never been published in the Federal Register and the possible approval or rejection process has not yet begun.
The U.S. SEC has discussed the security attributes of SOL with ETF issuers. Before Cboe BZX removed the Solana ETF-related 19b-4 form from its website, the U.S. SEC had met with potential Solana ETF issuers and expressed concerns about Solana's potential status as a security.
Sources said the SEC’s stance was not surprising to issuers given that it had previously called Solana a security in multiple court filings. They expect there may be new filings or amendments to 19b-4 in the future that attempt to prove that Solana is not a security.
Brazil’s Securities and Exchange Commission has approved a second Solana spot ETF. According to the CVM database, the new Solana (SOL) ETF is in the pre-operational stage and will be launched by Hashdex, a Brazil-based asset manager with over $962 million in assets under management, in partnership with local investment bank BTG Pactual.
On August 8, the CVM approved the country’s first Solana ETF, to be issued by Brazilian asset manager QR Asset.
Opinions and analysis on crypto ETFs
Trader Eugene: Since the launch of ETH ETF, only ETHE arbitrage buyers have become the ultimate winners
Trader Eugene Ng Ah Sio posted on social media that the inflow of funds from the launch of the ETH ETF has been disappointing, resulting in only arbitrage buyers of ETHE becoming the ultimate winners. Most of the positions that were optimistic about the future market were washed out in the coin price fluctuations. The ETH market is currently facing extreme negative sentiment and large OG capitulation. This means that ETH's current positioning may be at its lowest position ever.
Deribit Asia Pacific Business Director: Compared with the most popular gold ETF, the asset management scale of Bitcoin ETF can triple again
Lin Chen, head of Asia Pacific business at Deribit, said in a post on X: "The overall inflow of ETFs this year has been very good. IBIT (Blackrock's Bitcoin spot ETF) ranks third with a net inflow of $20 billion this year. The most popular gold ETF is GLD, with a current asset management volume of $68.88 billion. In other words, compared with the most popular gold ETF, BTC's ETF asset management can triple again."
Bitwise CIO: Institutional investors are adopting Bitcoin spot ETFs faster than any ETF in history
Bitwise CIO Matt Hougan wrote that institutional investors are adopting Bitcoin spot ETFs faster than any ETF in history, and Bitcoin spot ETFs have attracted $17.5 billion in net flows since their launch in January. Bitcoin spot ETFs have been in the lead in institutional adoption so far, both in terms of the number of institutions and the size of assets under management.
Bloomberg analyst: Unless there is a change in SEC leadership, the chances of Solana ETF approval are extremely slim
Eric Balchunas, ETF analyst at Bloomberg, said on X Platform that the Solana ETF application submitted by CBOE failed to pass the second step in the SEC review process, and the SEC did not confirm it, which directly "declared the application dead". As a result, the exchanges have withdrawn their 19b-4 applications, although the issuer's S-1 form is still valid. Unless there is a change in the leadership of the SEC, the chances of the application being approved are extremely slim.
