The U.S. spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund (ETF) market displayed an interesting trend on August 1st, 2024. Despite mildly bearish market conditions, several ETFs saw positive net inflows, indicating continued investor interest in these digital assets.
Bitcoin ETF Inflows A Mixed Bag
Total net inflows for Bitcoin ETFs reached a modest $50.64 million on August 1st. However, the picture gets more nuanced when looking at individual funds.
- Grayscale’s Mini Bitcoin Trust (BTC), with its significantly lower 0.15% fee compared to the standard 1.5% fee, emerged as a star performer. The fund saw a staggering $191.13 million in net inflows on its second day of trading, suggesting investors are attracted to the lower cost option.
- BlackRock’s iShares Bitcoin Trust (IBIT) exhibited steady growth with $25.9 million in net inflows.
However, not all Bitcoin ETFs fared well.
- Fidelity Wise Origin Bitcoin Fund (FBTC) witnessed a significant outflow of $48.4 million.
- Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) also saw net outflows exceeding $20 million each.
- Notably, the Grayscale Bitcoin Trust (GBTC) continued its outflow trend, losing $71.33 million and bringing its total outflow to over $19 billion.
Despite these losses, trading volumes remained high at $2.91 billion on August 1st. BlackRock’s IBIT dominated the scene with over $1.3 billion in traded value.
Ethereum ETFs: Finding Their Footing
Ethereum ETFs saw their third consecutive day of net inflows since their debut, accumulating $26.75 million on August 1st.
- BlackRock’s iShares ETF (ETHA) led the pack with a solid $89.65 million in net inflows.
- Fidelity Ethereum Fund (FETH) and Bitwise’s Ethereum ETF (ETHW) also experienced positive inflows.
However, the story wouldn’t be complete without mentioning Grayscale’s Ethereum Trust (ETHE) which continued its eight-day outflow streak, losing $77.95 million. This brings its total net outflows to over $2 billion.
Also Read: Bitcoin Stuck In $53K-$72K Range – Tick Tock For Massive Breakout?
The Rise of the Mini Funds
One interesting takeaway is the potential success of Grayscale’s “mini fund” strategy. These mini funds, with significantly lower fees than their larger counterparts, seem to be attracting investor interest.
- Grayscale’s ETHE, with its 2.5% fee, witnessed substantial outflows. However, the launch of the mini fund with a 0.15% fee has mitigated some of these losses.
- This strategy seems like a response to the massive outflows experienced by GBTC, which has lost over $19 billion due to its 1.5% fee.
Overall, the U.S. spot Bitcoin and Ethereum ETF market paints a picture of cautious optimism. While some funds experienced outflows, others saw positive inflows, indicating a diverse investor sentiment. The success of Grayscale’s mini funds also highlights the importance of cost-efficiency in attracting investors to this burgeoning asset class.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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