Arrangement: Fairy, ChainCatcher
Editor: Marco, ChainCatcher
Crypto Spot ETF Performance Last Week
From August 26 to 29, global Bitcoin spot ETF holdings decreased by 1,213 BTC. In addition to Grayscale, other US Bitcoin spot ETFs reduced their holdings by 972 BTC, which rarely exceeded Grayscale's outflow.
Data from @Phyrex_Ni
Most US Bitcoin spot ETFs experience net outflows
Last week, U.S. Bitcoin spot ETFs had a net outflow of $277 million, and most ETFs experienced significant outflows. BlackRock IBIT had a net outflow of $13.5 million on August 29, which was the fifth outflow in the fund’s history and the second largest outflow.
Last week, 7 Bitcoin spot ETFs had net outflows:
Grayscale ETF GBTC had a net outflow of $1.9 billion, and its net asset value dropped to $13.25 billion;
Fidelity ETF FBTC had a net outflow of $62.7 million, with a net asset value of $100 million;
Ark Invest and 21Shares’ ETF ARKB saw net outflows of $2.1 billion, with a net asset value of $2.61 billion;
InvescoETF BTCO had a net outflow of $11.1 million and a net asset value of $5.2 billion;
Bitwise ETF BITB had a net outflow of $56.6 million and a net asset value of $900 million;
Valkyrie ETF BRRR had a net outflow of $1.7 million and a net asset value of $2.3 billion;
VanEck ETF HOOL had a net outflow of $17.03 million and a net asset value of $4.3 billion;
Grayscale Mini ETF BTC had a net outflow of $8.8 million and a net asset value of $100 million.
Source: Farside Investors
US Ethereum spot ETF net outflow of $12.4 million
Last week, the U.S. Ethereum spot ETF had a net outflow of $12.4 million. On August 30, the Ethereum spot ETF had a total net inflow of $0, which was the first time in 30 trading days since the Ethereum spot ETF went online that the total net inflow was zero.
Grayscale ETHE had a net outflow of $27.8 million, and the current selling volume is only one-eighth of the initial volume, which may mean that Grayscale's selling pressure is coming to an end. BlackRock ETHA had a net inflow of $8.4 million on August 28, and no funds flowed on the other four days.
Source: Farside Investors
Hong Kong crypto ETF liquidity further declines
Last week, the Hong Kong Bitcoin spot ETF had a net inflow of 29.75 Bitcoins, with a total net asset value of US$266 million. The Ethereum spot ETF had a net outflow of 62.46 ETH, with a total net asset value of US$36.61 million.
In terms of trading volume data, both Bitcoin and Ethereum spot ETFs recorded high daily trading volumes on August 26 and 28. The trading volume of Bitcoin spot ETF on August 28 reached 2.05 million US dollars, while the trading volume of Ethereum spot ETF on the same day was 1.03 million US dollars.
Data: SoSoValue
An overview of crypto ETF activity last week
Cboe submits revised application for listing of spot Bitcoin and Ethereum ETF options: According to regulatory documents, Cboe seeks to list options based on Bitcoin and Ethereum ETFs issued by asset management companies, including Fidelity, 21Shares, Invesco, VanEck, Grayscale, Bitwise, BlackRock iShares and Valkyrie. Its proposed rule change classifies cryptocurrency spot ETFs as "securities suitable for option trading" along with commodity ETFs such as Goldman Sachs Physical Gold ETF and iShares Silver Trust.
BOC International Securities is launching a virtual asset futures ETF: In response to the Hong Kong financial regulator's promotion of financial product reform and innovation in recent years, BOC International Securities is actively launching a virtual asset futures ETF.
Bitwise Bitcoin Spot ETF will acquire all assets of Osprey Bitcoin Trust. Osprey Funds, the sponsor of Osprey Bitcoin Trust (OBTC), has reached an agreement with BITB and Bitwise Asset Management, and BITB will acquire all assets of the OBTC fund.
In March, Osprey said it was considering other strategic moves, such as a sale or merger with a Bitcoin ETF. Osprey must complete the sale or merger by September 1, 2024, otherwise it will liquidate OBTC. Osprey Funds said in a statement: "As part of this transaction, OBTC unit holders will receive BITB shares as part of the OBTC liquidation distribution. For existing BITB holders, there will be no changes to their shares, and there will be no changes to BITB's operations."
Prior to BITB’s acquisition of OBTC, Bitwise had acquired ETC Group, a London-based cryptocurrency ETP issuer, on August 19. BITB’s assets account for 4.69% of the Bitcoin spot ETF market.
BlackRock listed its iShares Ethereum Trust (ETHA) on Brazil’s B3 exchange last Wednesday: the ETF will trade in the form of Brazilian Depositary Receipts (BDRs) under the ticker ETHA39.
BlackRock adds 4,000 shares of spot Bitcoin ETF to its Strategic Global Bond Fund.
Opinions and analysis on crypto ETFs
Citi: ETF flows may continue to disappoint until markets have clarity on the outcome of the U.S. economic landing
Citigroup said in a research report that the cryptocurrency market has been struggling since the launch of spot Ethereum ETF trading in the United States on July 23.
The bank noted that other risk assets also performed weakly during this period, but cryptocurrencies have underperformed since the rebound in non-farm payrolls (NFP) on a volatility-adjusted basis. Unless the market has more transparency on the "soft landing vs. hard landing outcomes" of the U.S. economy, ETF flows are likely to continue to disappoint.
CF Benchmarks CEO: Ethereum spot ETF demand may continue to grow in the coming months
Sui Chung, CEO of index provider CF Benchmarks, said demand for Ethereum spot ETFs is likely to continue to grow in the coming months, and more wealth management firms are expected to offer such products to their clients.
“We expect inflows into Ethereum ETFs to continue to climb once wealth managers and financial advisors complete the education process on what Ethereum is, its utility, and why they should hold it alongside a Bitcoin ETF,” said Sui Chung. “The education process will educate investors on the Ethereum economy and highlight its key differences from Bitcoin, making it clear that the allocation drivers are different and both belong in a balanced portfolio.”
