Bitcoin and Ethereum ETFs in the Red With Joint Outflows

• Bitcoin ETFs command $57.72 billion in net assets or 4.68% of BTC’s market cap.
• BlackRock’s BTC and ETH ETFs have combined cumulative inflows of $22.89 billion.
• Ethereum ETFs hold $6.67 billion in net assets or 2.27% of ETH’s market cap.

U.S. spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) have posted combined outflows despite relatively high trading volumes.

Bitcoin ETFs

As per data collected by SoSoValue, Bitcoin ETFs were unable to maintain an upward momentum as funds post $18.66 million in outflows, Oct. 7, 2024.

Up top, BlackRock’s iShares Bitcoin Trust (IBIT) was the only fund in the green, netting $39.57 million in net inflows. With $21.7 billion in cumulative net inflows, IBIT is—by far—the best-performing BTC ETF.

As for outflows, Fidelity’s Wise Origin Bitcoin Fund (FBTC) posted $48.82 million in exits. This is a minor outflow for FBTC, the second-best-performing BTC ETF, with $9.9 billion in cumulative net inflows.

Finally, the Grayscale Bitcoin Trust (GBTC) recorded $9.41 million in outflows, bringing its cumulative outflow to a gigantic $20.15 billion. All other funds flowed neutral.

Ethereum ETFs

As per SoSoValue, Ethereum ETFs have had yet another quiet day of trading, posting $8.19 million in outflows on Oct. 7, 2024.

Just two funds saw outflows. Firstly, the Bitwise Ethereum ETF (ETHW) recorded its third-ever day of outflows, posting $4.52 million in exits. At present, BITB is the third-best-performing ETH ETF with $322.11 million in cumulative net outflows.

Fidelity’s Ethereum Fund (FETH) saw its fifth day of outflows, shedding $3.65 million from its fund. FETH ranks second for cumulative inflows of $449.43 million. All other funds flowed neutral.

Ethereum, Insecure?

Bloomberg’s senior ETF analyst, Eric Balchunas, found himself in hot water after sharing with X a rather hyperbolic excerpt from the “Bitcoin Beginner’s Guide” book written by Benjamin Hart.

According to the book, Ethereum is vulnerable to the whims of governments and private companies. In short, the book claims that governments such as the U.S. could effectively shut down Ethereum by going after Amazon Web Services (AWS) cloud infrastructure if they wanted to.

The book argues that Bitcoin is not so susceptible as it is completely decentralized and distributed across over 1 million computers worldwide. However, the community was rattled and took Balchunas to task over his spreading of “blatant misinformation.”

The book fails to point out that if an AWS blackout were to occur for any reason, plenty of nodes hosted at home, on private services, or with other cloud providers would still be running. Ethereum doesn’t rely on any specific set of nodes to keep functioning; it just needs one.

It’s unfortunate, as the response would make it appear that Balchunas wrote the book himself. However, he reads and wrongly believes the hyperbole presented to him. As an increasingly popular voice in crypto, thanks to his coverage of BTC and ETH ETFs, and for better or worse, he has since removed the post.