Bitcoin and Ethereum ETFs Flows Suffer Setback Amid Lacklustre Trading Day


  • Bitcoin and Ethereum experienced a weak day of trading on Wednesday, with Bitcoin barely hanging onto positive flows while Ether bled US $77m.
  • Bitcoin holdings were up a meagre US $299k, with BlackRock’s IBIT leading the way.
  • Over on the Ethereum side, Grayscale’s converted Ether ETF experienced a massive US $133m in outflows.
  • However, all other Ether ETFs were positive or neutral on Wednesday, giving some relief to investors.

Mid-week trading hasn’t been kind to spot crypto ETFs in the US, with all but two Bitcoin funds suffering significant outflows. The slight decline in inflows mirrors BTC itself, with the digital currency falling 1.5% over the past week. Yesterday in particular was a tough day for the coin, dropping nearly 3% in just 24 hours.  

Bitcoin (BTC), 7-day chart, source: CoinMarketCap

Related: Crypto Consolidation Looms as Bitcoin Struggles with $66K Mark Amid Profit-Taking and Record Open Interest

BlackRock Rules the Roost Despite Appetite Slowing

Of the two spot BTC funds to experience inflows, one was – of course – BlackRock’s IBIT. 

The success of the ETF since its approval in January has been unmatched and is showing no signs of slowing down. The fund enjoyed US $21m (AU $32.36m) inflows on Wednesday, bringing the total holdings of IBIT to 340k BTC – valued at an obscene US $22b (AU $33b).

Meanwhile, Grayscale’s new Bitcoin product, the Grayscale Bitcoin Mini Trust, ate up US $18m (AU $27m) worth of inflows in its first day of trading. 

Overall, Bitcoin’s positive net flows for Wednesday were filipendulous, experiencing just US $299k (AU $460k) in inflows. By comparison, the best weeks of trading saw daily average inflows of over US $175m (AU $269m).

Grayscale ETHE Leaks US $133m as Other Spot Ether Funds Experience Inflows

At first glance, Wednesday was particularly grim for spot Ether funds. 

The day prior, spot ETH ETFs broke out of a mediocre slump to record inflows of US $33.7m (AU $51.57m). However, the renaissance was short-lived, as Wednesday saw US $77.21m (AU $118m) in outflows.

As expected, most of the money flowing out from Ether ETFs was due to Grayscale Ethereum Trust (ETHE), which has consistently bled cash since it converted to an ETF on July 23rd. ETHE itself was responsible for US $133m (AU $204m) of outflows – meaning other Ether ETFs actually posted positive results.

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Grayscale’s alternative Ether ETF, the Grayscale Ethereum Mini Trust, was the big winner, boasting inflows of nearly US $20m (AU $30.8m). All other spot Ether ETFs, bar two, similarly recorded positive cash flows on Wednesday – so it’s not all bad news for the new Ether products. 



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