"Sharp Decline in US ETF Flows: Bitcoin ETFs See Major Outflows, Ethereum Remains Stable"

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"Sharp Decline in US ETF Flows: Bitcoin ETFs See Major Outflows, Ethereum Remains Stable"

Trend:

The current week represents a significant change from previous weeks, characterized by a sharp decline in ETF fund movements. The volume of funds has increased by -131.83%, indicating a substantial outflow of -$582.10M. This week can be characterized as a steep decline after a period of relative stabilization. The increase in outflows suggests a bearish sentiment in the market, with investors pulling out funds at a much higher rate compared to previous weeks.

Comparison total flows of Hong Kong vs US ETFs:

The total flows for US ETFs amounted to -$582.10M, while Hong Kong ETFs saw a net flow of $0. The stark difference highlights a significant bearish trend in the US market, possibly driven by macroeconomic factors or investor sentiment. In contrast, the Hong Kong market remained neutral, potentially indicating a lack of significant trading activity or a balanced market sentiment.

Comparison total flows of Bitcoin vs ETH ETFs:

ETH ETFs had a total flow of $0, while BTC ETFs experienced a notable outflow of -$582.10M. The current trend suggests that Bitcoin ETFs are facing increased selling pressure, possibly due to market volatility or negative news impacting Bitcoin. Meanwhile, Ethereum ETFs remained stable, indicating either a lack of significant trading activity or a balanced market sentiment for Ethereum.

Biggest Gainer:

The ETF with the biggest gain this week was IBIT, with a gain of $40.10M. IBIT is issued by BlackRock and focuses on providing exposure to Bitcoin. This gain indicates a selective interest in Bitcoin ETFs despite the overall bearish trend.

Biggest Loser:

The ETF with the biggest loss was GBTC, with a loss of -$274.30M. GBTC is issued by Digital Currency Group, Inc. (Grayscale) and is one of the largest Bitcoin ETFs. The significant outflow from GBTC suggests a strong bearish sentiment among investors towards this particular fund.

Day with the Highest Inflow:

The day with the highest inflow was Monday, with a total inflow of $1.04B. On this day, the ETF with the highest gain was IBIT, with a gain of $849.00M. IBIT is issued by BlackRock and focuses on Bitcoin exposure. The ETF with the largest loss on this day was GBTC, with a loss of -$79.00M. GBTC is issued by Digital Currency Group, Inc. (Grayscale) and is a major Bitcoin ETF.

Day with the Highest Outflow:

The day with the highest outflow was Wednesday, with a total outflow of -$563.70M. On this day, the ETF with the highest gain was BTCO, with a minor gain of -$5.40M. BTCO is issued by Invesco in collaboration with Galaxy and focuses on Bitcoin. The ETF with the largest loss on this day was FBTC, with a loss of -$191.10M. FBTC is issued by Fidelity and is known as the Fidelity Wise Origin Bitcoin Fund.

Bitcoin ETFs

Bitcoin ETFs have seen significant activity recently. In the first full trading week of June, U.S. Bitcoin ETFs acquired almost as much Bitcoin as they did in the entire month of May. However, U.S. spot bitcoin ETFs saw a daily net outflow of $64.93 million on Monday, ending a 19-day inflow streak. This trend continued with a cumulative outflow of $226 million on Thursday, led by Fidelity’s FBTC. Despite this, BlackRock’s IBIT was the only ETF posting a net inflow on Thursday. Institutional cash-and-carry trades appear to be impacting buy-side pressure in U.S. bitcoin spot ETFs.

Sources: Cointelegraph, The Block, The Block, CoinDesk, The Block

Ethereum ETFs

Spot Ethereum ETFs could capture up to 20% of Bitcoin ETF flows, according to analysts. The SEC is considering spot Ether ETF applications from ProShares, and SEC Chair Gary Gensler has indicated that these ETFs should be fully approved by the end of the summer. Analysts claim institutional interest in spot ether ETFs is diminished without staking, and the recent SEC decision sets Ethereum up for success in numerous new ways.

Sources: The Block, Cointelegraph, CoinDesk, The Block, CoinDesk

The crypto market has been affected by various factors recently. Bitcoin fell below $67K as ETFs' inflows streak ended, and U.S. spot bitcoin ETFs reported $226 million in net outflows on Thursday. Market participants are cautious ahead of a U.S. CPI print and a Fed monetary policy meeting. Retail investors are not a key driver of spot Bitcoin ETFs, with a majority of inflows coming from arbitrage trading hedge funds. Additionally, Polymarket sees over $200,000 bet on Solana ETF approval by Dec 31, 2024.

Sources: CoinDesk, The Block, Cointelegraph, Cointelegraph, BeInCrypto

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