Other major Bitcoin ETFs also experienced outflows.
For the third day in a row, U.S. spot Bitcoin exchange-traded funds (ETFs) saw net withdrawals of $71.73 million on Thursday.
According to SosoValue data, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, saw $13.51 million leave the fund, marking the first net outflows since May 1.
Other major Bitcoin ETFs also experienced outflows.
$22.68 million was taken out of Grayscale’s GBTC, and $31.11 million was taken out of Fidelity’s FBTC.
Valkyrie’s BRRR and Bitwise’s BITB both disclosed withdrawals of $1.68 million and $8.09 million, respectively.
Ark and 21Shares’ ARKB See Inflows
Not all funds, though, saw a loss; with net inflows of $5.34 million, Ark and 21Shares’ ARKB managed to defy the trend.
The 12 Bitcoin ETFs that trade at the top saw a decline in trading volumes as well; on Thursday, they were down from $2.18 billion to $1.64 billion.
On August 29, the total net outflow of Bitcoin spot ETFs was $71.7301 million. Grayscale ETF GBTC outflowed $22.6760 million, and Ark Invest and 21Shares' ETF ARKB had a inflow of $5.3363 million. Currently, the total net asset value of Bitcoin spot ETFs is $54.362 billion.…
— Wu Blockchain (@WuBlockchain) August 30, 2024
Spot Ethereum ETFs reflected the negative mood, posting net withdrawals of $1.77 million on Thursday following a brief period of inflows.
The Grayscale Ethereum Mini Trust (ETH) saw net inflows of $3.57 million, which somewhat offset the $5.35 million outflows from the Grayscale Ethereum Trust (ETHE).
The remaining seven Ethereum funds saw no movement.
The combined trading volume of the nine Ethereum ETFs that are ranked first decreased to $95.91 million on Thursday from $151.57 million on Wednesday.
The ETH ETFs saw net outflows on Wednesday, following nine days of net outflows. On Wednesday, the funds saw a net inflow of $5.8 million, which was a positive movement.
The withdrawals coincided with modest drops in the prices of Bitcoin and Ethereum, with the former falling by 0.3% to roughly $58,984 and the latter by 0.29% to roughly $2,516.
Spot Ether ETFs Was Expected to Perform Poorly
Compared to spot Bitcoin ETFs, ether spot ETFs have experienced net withdrawals since their U.S. launch last month, according to a JPMorgan research report that was made public on Wednesday.
On July 23, or about six months after Bitcoin funds launched, ether exchange-traded funds (ETFs) started trading.
JPMorgan’s analysts observed that during the initial five weeks after each launch, net inflows for Ether ETFs exceeded $500 million, whereas net inflows for Bitcoin ETFs exceeded $5 billion.
The lack of staking options, lower liquidity, and Bitcoin’s “first mover advantage” were cited by the bank as the reasons for the poor performance of ether ETFs, which turned institutional investors away.
What was unexpected, though, was the $2.5 billion that Grayscale’s Ethereum Trust (ETHE) withdrew.
A $1 billion outflow was something JPMorgan had expected as the trust moved from a closed-end fund to a spot ETF.
Grayscale launched a mini ether exchange-traded fund (ETF) to counteract the ETHE outflows, but it only brought in $200 million.
Under the leadership of Nikolaos Panigirtzoglou, the JPMorgan team hypothesized that the increased interest in a combined ETF providing exposure to both assets is a result of the weaker demand for Ether ETFs relative to Bitcoin.
In addition, the report noted that retail investors held approximately 80% of spot Bitcoin ETF ownership, while institutional ownership stayed mostly unchanged from the first quarter.