3 months ago
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The US spot Ethereum ETFs have seen over $500 million in total net outflows since it started trading last month.
CoinShares has revealed in its latest report that the global crypto investment products from some of the top asset managers saw huge outflows in the past week. Precisely, asset managers like Ark Invest, Bitwise, BlackRock Inc (NYSE: BLK), Fidelity Investments, Grayscale, ProShares, and 21Shares registered net outflows worth $528 million last week.
US Recession Fears Triggers Market to Plummet
According to CoinShares Head of Research James Butterfill, the outflows came as a reaction to “fears of a recession in the US, geopolitical concerns, and consequent broader market liquidations across most asset classes.” He further noted that the price correction from Friday’s close saw $10 billion wiped off the total Exchange Traded Products (ETP) Asset Management Management (AUM).
Bitcoin and Ethereum products currently have a sizable percentage of the market and they are both leading the massive outflows. However, Bitcoin-based products dominate with about $400 million of the outflows. This is a switch-up from the five consecutive days of net inflows that these products registered before the outflow struck.
For the first time since June, short Bitcoin funds also hit its first significant net inflow, adding $1.8 million. Markedly, the outflows from United States spot Bitcoin ETFs represented only about $80.6 million from the global net outflows. It reached this level due to the $237.4 million worth of net outflows from Friday, which surpassed the net inflows that the ETFs saw at the beginning of the week.
On Thursday, spot Bitcoin ETFs registered $50 million in outflow. Surprisingly, Blackrock’s IBIT did not lead this time around but Grayscale’s newly launched Bitcoin Mini ETF (BTC). The spot Bitcoin ETF saw up to $191 million in inflows on the second day of launch. With this value, it surpassed IBIT’s $26 million inflows by a huge margin.
Spot Ethereum ETFs Records Less Bleed
Around this same time, US spot Ethereum ETFs registered a positive movement, undeterred by the huge outflows from Grayscale Ethereum Trust (ETHE). On the same August 1, the Ethereum ETFs saw inflows of $26.7 million, triggered by the large $89.6 million investment in BlackRock’s iShares Ethereum Trust (ETHA).
On the other hand, Grayscale’s Ethereum Trust saw $78 million in outflows.
Globally, ETH ETFs recorded only $146 million in net outflows last week, only a small percentage of that registered Bitcoin ETFs. US spot Ethereum ETFs dominated this figure. Only Grayscale converted and higher-fee fund ETHE contributed $603 million in net outflows. This figure ended up overwhelming the $433.6 million worth of net inflows into the new Ethereum ETFs.
Generally, the US spot Ethereum ETFs have seen over $500 million in total net outflows since it started trading last month. As a region, US-based funds have seen the most outflows at $531 million. Hong Kong and Germany-based crypto investment products have equally recorded net outflows of $27 million and $12 million, respectively.
