Spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States recorded nearly $1 billion in combined outflows on Aug. 19, extending a current streak of investor withdrawals.
These heavy outflows can be linked to the recent price corrections in the crypto market.
According to CryptoSlate’s data, Bitcoin price retraced from recent highs to as low as $112,000 during the last 24 hours, which is its lowest level since early August.
Notably, Ethereum followed a similar path, dropping over 8% in the past week to trade at roughly $4,200 at the time of reporting.
Bitcoin and Ethereum ETF outflows
According to SoSoValue data, Bitcoin ETFs bore the brunt of the redemptions, losing $523 million in a single day.
Fidelity’s FBTC led the retreat with $246.9 million in outflows, while Grayscale’s GBTC shed $115.53 million.
Additional outflows came from Bitwise’s BITB, which saw a $87 million outflow, while Ark 21Shares’s ARKB fund recorded a $64 billion capital exit. Franklin Templeton’s EZET saw the least outflow on the day, with around $3 million leaving the fund.
Meanwhile, other Bitcoin ETF products like BlackRock’s IBIT and VanEck’s HODL held steady without registering inflows or outflows.
On the other hand, Ethereum ETFs saw similar pressure on the day, recording $422.3 million in redemptions. This marked the second-largest single-day withdrawal since spot Ether funds debuted earlier this year.
Fidelity’s FETH lost $156.32 million, followed by Grayscale’s two Ethereum products shedding more than $200 million. Bitwise’s ETHW also recorded significant outflows of over $39 million.
Other ETH financial instruments like BlackRock’s ETHA, VanEck’s ETHV, and 21Shares CETH funds lost $15 million.
Despite these significant reductions in their assets, the US-based crypto ETFs’ assets under management remain at record levels.
According to SoSo Value data, Bitcoin ETFs collectively manage $14.6 billion, while Ethereum ETFs maintain approximately $2.6 billion.
Crypto ETFs’ enthusiasm persists
Despite the significant redemptions in the BTC and ETH funds, attention is shifting toward the next wave of spot crypto ETFs.
Nate Geraci, president of NovaDius Wealth, argued that approvals for additional products are close, saying the “floodgates” could open within two months as a clearer regulatory framework takes shape.
He also pointed to possible authorization for staking within spot Ethereum ETFs, calling the remainder of the year “potentially wild” for the sector.
Notably, the SEC is currently reviewing applications for ETFs tied to XRP, Solana, Litecoin, and other prominent tokens.
Bloomberg ETF Analysts James Seyffart and Eric Balchunas have projected a high likelihood of over 90% of these products being approved, citing the agency’s current pro-crypto leadership.
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Source: https://cryptoslate.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/
