Bitcoin Spot ETFs See $78M in Outflows After 12 Days of Consecutive Inflows

Bitcoin spot exchange-traded funds (ETFs) witnessed outflows amounting to $77.9704 million on July 23, marking the first net outflow after twelve consecutive days of net inflows.

Among the ETFs, Grayscale’s GBTC recorded a notable net outflow of $27.3094 million, according to data from SoSoValue.

Similarly, the Ark & 21Shares ETF experienced a substantial outflow of $52.29 million, while Bitwise saw an outflow of $70.32 million.

In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) defied the trend with a net inflow of $71.9426 million.

On July 23, the total net outflow of Bitcoin spot ETFs was $77.9704 million, the first net outflow after the net inflow in the past 12 days. Grayscale ETF GBTC had a net outflow of $27.3094 million, Ark & 21Shares had an outflow of $52.29 million, and Bitwise had an outflow of…

— Wu Blockchain (@WuBlockchain) July 24, 2024

BlackRock’s IBIT Captures 67% of Volume

It is worth noting that IBIT has captured an impressive 67% of the spot Bitcoin ETF volume market share, a significant leap from its previous record of 61%.

This surge solidifies BlackRock’s dominant position in the crypto ETF arena.

However, it’s important to note that IBIT’s daily trading volume stood at $1.2 billion, which is relatively average for the fund.

This indicates that while IBIT is outperforming its competitors in market share, the overall trading activity within the Bitcoin ETF market remains steady.

The discrepancy between IBIT’s record market share and its average volume suggests a decline in trading activity among other Bitcoin ETFs.

This dynamic allows IBIT to claim a larger market share without a corresponding increase in its own trading volume.

The asset management giant’s reputation, extensive distribution network, and marketing acumen have made it a preferred choice for both institutional and retail investors entering the crypto ETF space.

As reported, digital asset investment products saw a substantial inflow of $1.35 billion last week, bringing the total inflows over the past three weeks to an impressive $3.2 billion.

Bitcoin remained a popular choice among investors, attracting $1.27 billion in inflows last week.

Spot Ethereum ETFs See Over $1 Billion in Volume on First Day

The launch of spot Ethereum ETFs generated over $1 billion in trading volume on their first day.

Nine different Ethereum ETFs from eight issuers began trading, transforming the typically staid world of ETF trading into a vibrant arena.

On their first day, Ethereum ETFs amassed more than $1.019 billion in cumulative trading volume.

The Grayscale Ethereum Trust (ETHE) led with $456 million, nearly half of the total volume.

BlackRock’s iShares Ethereum Trust (ETHA) followed with $240 million, accounting for 24% of the total, while Fidelity’s Ethereum Fund (FETH) captured 13%, or $136 million.

The 11 spot Bitcoin ETFs have collectively amassed a nearly $60 billion market cap and $330 billion in cumulative volume.

In a recent note, Sergei Gorev, a risk manager at YouHodler, said that while Ether ETFs might not have the same effect as Bitcoin ETFs, several factors come into play.

For one, he said Ethereum remains the second most popular coin, but the issue of coin staking needs to be fully resolved.

Some investors may hesitate to give up staking rewards, as staking will not be available for ETF investments on Ethereum at present.

Additionally, the timing of the ETF launch during the summer, when many investors are on vacation, may influence market dynamics.