Bitcoin ETF Flows Turn Green After 8-Day Drought, ETH ETFs Still See Red

• Bitcoin ETFs saw over $1 billion in net outflows as BTC struggled to regain the $60,000 level.
• Grayscale Ethereum ETF outflows continue to drag daily and weekly flow results.
• The Grayscale Bitcoin Trust (GBTC) outflows now total $20.04 billion.

As the cryptocurrency markets look to regain bullish sentiment, US spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) have started the week with mixed results.

Bitcoin ETFs

As per data  provided by SoSoValue, Bitcoin ETFs have ended their 8-day outflow streak, netting a humble $28.72 million in cumulative net inflows.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) secured the top spot with $28.6 million in net inflows after shedding over $400 million from its fund since Aug. 28. Just behind is the Bitwise Bitcoin ETF (BITB), which bagged a humble $21.99 million in net inflows.

The ARK 21Shares Bitcoin ETF (ARKB) recorded meager inflows of $6.81 million after shedding over $200 million since Aug. 27. Finally, the Invesco Galaxy Bitcoin ETF (BTCO) had a rare day of inflows, netting $3.14 million.

Looking at outflows, the Grayscale Bitcoin Trust (GBTC) has maintained its outflow streak, shedding $22.76 million from its fund. Having now surpassed a bitter $20 billion in cumulative net outflows, GBTC’s outflows seem to have no end in sight.

Oddly, BlackRock’s iShares Bitcoin Trust (IBIT) posted its third-ever day of outflows, posting $9.06 million in exits. This would bring the fund’s total outflows to around $58 million, barely putting a dent in its $20.91 billion cumulative net inflows.

Ethereum ETFs

Looking at SoSoValue data, Ethereum ETFs are struggling to gain  momentum amid the market dip, posting $5.2 million in net outflows for Sept. 9.

Up top, the Grayscale Ethereum Mini Trust saw $7.97 million, marking its largest day of inflows since July 31. The fund’s cumulative net inflows now total $257.66 million. This is somewhat of a disappointing result for the fund, which was designed to absorb outflows from its primary fund.

Trailing just behind, the Fidelity Ethereum Fund (FETH) posted $7.62 million in net inflows, raising the fund’s cumulative total to $405.43 million. The Bitwise Ethereum ETF (ETHW) was also in the green with $1.855 million in net inflows.

As always, the Grayscale Ethereum Trust (ETHE) was in the red with $22.64 million in exits from the fund. Having not seen a single day of net inflows, ETHE has seen a cumulative net outflow of $2.69 billion.

The SEC’s Warning

The US Securities and Exchange Commission (SEC) recently issued a bulletin  that warned about the risks of BTC and ETH exchange-traded products (ETPs), which include ETFs.

As per the Sept. 9 post, the regulator has urged investors to consider the potential risks. It cites high price volatility, sponsor fees, risks in the underlying market, and fraud in unregulated markets.

“Spot bitcoin or ether ETPs may have unique characteristics and heightened risks compared to other investments,”

In addition, it highlights that BTC and ETH ETPs aren’t “registered as investment companies under the Investment Company Act of 1940.” This means funds lack asset custody and valuation-related protections usually afforded to ETFs and mutual funds.

Stressing the importance of reviewing disclosure documents, the ever-hawkish SEC urges investors to gain an understanding of the risk involved. This is ironic, considering the SEC is often criticized for routinely misunderstanding cryptocurrencies.

About the Author

Eddie Mitchell

Eddie has been writing news and content primarily for crypto news and industry players over the past seven years. With an eye for the bigger picture, Eddie prefers to investigate the broader implications of a story, as well as explore the weird and wonderful world of crypto. He believes blockchain has already changed the world, but observes the space overall with a skeptical and adoring eye.

See more

[email protected]