Spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States experienced a significant outflow of nearly $1 billion on August 19th, as investors continued to withdraw their assets amidst recent price corrections in the crypto market.
The latest data from CryptoSlate revealed that Bitcoin’s price dropped to as low as $112,000 in the past 24 hours, marking its lowest level since early August. Similarly, Ethereum also saw a decline of over 8% in the past week, trading at around $4,200 at the time of reporting.
Bitcoin ETFs faced the brunt of the redemptions, with a total of $523 million being withdrawn in a single day. Fidelity’s FBTC led the retreat with $246.9 million in outflows, followed by Grayscale’s GBTC which shed $115.53 million. Other Bitcoin ETF products like Bitwise’s BITB and Ark 21Shares’s ARKB also recorded significant outflows.
On the other hand, Ethereum ETFs saw a similar trend with $422.3 million in redemptions on the same day. Fidelity’s FETH lost $156.32 million, while Grayscale’s Ethereum products also experienced substantial outflows. Despite these outflows, the assets under management for US-based crypto ETFs remain at record levels, with Bitcoin ETFs managing $14.6 billion and Ethereum ETFs maintaining approximately $2.6 billion.
Looking ahead, there is growing anticipation for the approval of additional spot crypto ETFs in the near future. Nate Geraci, president of NovaDius Wealth, suggested that approvals for new products could come within the next two months as the regulatory framework becomes clearer. He also hinted at the possibility of staking being authorized within spot Ethereum ETFs, making the remainder of the year potentially exciting for the sector.
The Securities and Exchange Commission (SEC) is currently reviewing applications for ETFs tied to various cryptocurrencies such as XRP, Solana, and Litecoin. Bloomberg ETF Analysts James Seyffart and Eric Balchunas have expressed optimism about the approval of these products, citing the agency’s pro-crypto leadership.
Overall, while the recent outflows from Bitcoin and Ethereum ETFs have raised concerns, the enthusiasm for crypto ETFs remains strong as the industry continues to evolve and expand. Stay tuned for more updates on the evolving landscape of cryptocurrency ETFs.