Bitcoin ETFs Dip, But the Cryptocurrency Holds On to Most of Its Recent Gains

The five largest U.S.-listed spot bitcoin ETFs by assets under management dipped in Monday trading, even as the cryptocurrency that they track held fast to a good portion of its gains from the past three days.

The five largest U.S.-listed spot bitcoin ETFs by assets under management dipped in Monday trading, even as the cryptocurrency that they track held fast to a good portion of its gains from the past three days.

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 slightly in negative territory after rising 5% to 6% last week.

Bitcoin was hovering near $63,600, down about 1% over the past 24 hours after it spent almost the entire weekend comfortably above $64,000 its highest level since the beginning of August, according to data provider CoinMarketCap.

Those gains came after U.S. Federal Reserve Chair Jerome Powell offered strong signals of the central bank's readiness to cut interest rates for the first time in more than four years, and crypto friendly presidential candidate Robert Kennedy announced he was abandoning his campaign and would support Republican nominee Donald Trump.

“Bitcoin's gains are being driven by Powell's signals and the presidential race, among other things,” said crypto market commentator and Deribit options trader Hsaka.

"The bitcoin ETF narrative has largely played out, and now we're seeing traders rotate into other crypto assets."

In her Crypto Is Macro Now newsletter, Noelle Acheson noted the "tailwinds piling up behind the BTC price."

"Rate cuts are good for BTC, as it is particularly sensitive to monetary liquidity conditions (seen as a risk asset, with no cash flow or margins to get hit in a slowdown)," she wrote.

Flows to the 11 spot bitcoin ETFs reached more than a quarter of a billion dollars on Friday as bitcoin's price climbed, about half its total for the week, according to U.K.-based asset manager Farside Investors. Those products, which now manage roughly $50 billion in assets, have received net inflows for seven consecutive days.

Market leader IBIT led last week's charge with about $87 million in inflows on Friday and more than $318 million in inflows for the five trading days. The fund has about $20 billion in AUM, the most among the fledgling products.

FBTC and ARKB generated $88 million and $76 million in weekly inflows, respectively.

GBTC had more than $86 million in weekly outflows and has totaled more than $19.7 billion in outflows, the only spot bitcoin ETF with outflows.

“The outflows from GBTC are likely due to its higher expense ratio and the fact that it is not a direct bitcoin exposure, but rather an exposure to the Grayscale trust, which itself holds bitcoin,” said Gary Gensler, former CFTC chairman and a professor at the Massachusetts Institute of Technology Sloan School of Management.

“The other bitcoin ETFs, such as IBIT and FBTC, offer a more direct and lower-cost way to gain exposure to bitcoin.”

GBTC differs from the other products because it is a conversion from an existing trust and has the highest expense ratio, 1.5%.

“The bitcoin ETFs are trading in line with bitcoin, which is seeing some profit-taking after rising almost every day for the past three weeks,” said Jay Benhamou, CEO of Derive Digital, a crypto asset management firm.

“Overall, the bitcoin ETFs are still performing well and are continuing to attract inflows.”

Ethereum ETFs Face Continued Outflows

Three of the four largest Ethereum ETFs by assets were trading lower on Monday with BlackRock's iShares Ethereum Trust (ETHA) and the Fidelity Ethereum Fund (FETH), and Grayscale Ethereum Trust (ETHE) off about 1%.

The Bitwise Ethereum ETF (ETHW) was a bright spot, rising more than 4%.

The nine spot Ethereum-based funds have generated net outflows for seven consecutive days, according to Farside data, and have received a more modest reaction from investors than the bitcoin funds.

They have totaled about $465 million in net outflows since they began trading in July, although that sum accounts for $2.5 billion in outflows from ETHE, another conversion from an existing trust with a high 2.5% fee.

The Ethereum funds track the price of ether, the token of the Ethereum smart contracts blockchain and second largest crypto by market capitalization after bitcoin.

Ether was recently trading at about $2,750, down 0.5% over the past 24 hours.

The seven largest U.S.-listed spot ether ETFs by assets under management slipped in Monday trading.

Der iShares Ethereum Trust (ETHA), Fidelity Ethereum Fund (FETH), Grayscale Ethereum Trust (ETHE), Bitwise Ethereum ETF (ETHW), ProShares UltraPro Short Ethereum (SETH), Van

The above is the detailed content of Bitcoin ETFs Dip, But the Cryptocurrency Holds On to Most of Its Recent Gains. For more information, please follow other related articles on the PHP Chinese website!