The five largest U.S.-listed spot Bitcoin ETFs saw a slight decline in Monday trading, despite Bitcoin maintaining most of its recent gains. The iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust ETF (GBTC), Bitwise Bitcoin ETF (BITB), and ARK 21Shares Bitcoin Trust (ARKB) were all trading marginally lower after posting gains of 5% to 6% last week. Bitcoin was trading near $63,600, down roughly 1% over the past 24 hours, after spending the weekend above $64,000, its highest level since early August, as reported by CoinMarketCap.
These gains followed a significant market shift triggered by U.S. Federal Reserve Chair Jerome Powell’s indications of a potential interest rate cut, the first in over four years, and the surprising political move by crypto-friendly presidential candidate Robert Kennedy, who exited his campaign to support Republican nominee Donald Trump.
Noelle Acheson, in her “Crypto Is Macro Now” newsletter, highlighted the favorable conditions for Bitcoin. “Rate cuts are beneficial for Bitcoin, as it responds strongly to changes in monetary liquidity, given its status as a risk asset without cash flow or margins susceptible to economic slowdowns,” she noted.
On Friday, inflows into the 11 spot Bitcoin ETFs surpassed $250 million, roughly half of the week’s total, according to U.K.-based asset manager Farside Investors. These funds, managing approximately $50 billion in assets, have experienced net inflows for seven consecutive days. IBIT led with about $87 million in inflows on Friday alone and over $318 million for the week. It boasts the largest assets under management (AUM) among the ETFs at around $20 billion. FBTC and ARKB attracted $88 million and $76 million in weekly inflows, respectively. In contrast, GBTC faced over $86 million in outflows for the week and has seen more than $19.7 billion in outflows to date, being the only Bitcoin ETF with a negative flow. GBTC, differing from its peers, is a conversion from an existing trust and has the highest expense ratio at 1.5%.
In contrast, Ethereum ETFs faced ongoing challenges. Three of the four largest Ethereum ETFs—BlackRock’s iShares Ethereum Trust (ETHA), Fidelity Ethereum Fund (FETH), and Grayscale Ethereum Trust (ETHE)—were trading down about 1% on Monday. The Bitwise Ethereum ETF (ETHW) was an exception, rising over 4%.
The nine Ethereum-based funds have experienced net outflows for seven consecutive days, according to Farside data, with total outflows of about $465 million since their inception in July. This includes $2.5 billion in outflows from ETHE, a high-fee conversion from an existing trust with a 2.5% fee. Ether, the second-largest cryptocurrency by market capitalization, was recently trading at around $2,750, down 0.5% over the past 24 hours.
Related Topics:
