Spot Bitcoin ETFs Experience $812M Outflow as Ether ETFs Endure 20-Day Inflow Streak

Spot Bitcoin ETFs Experience Historic Outflows

In a significant turn of events for the cryptocurrency market, spot Bitcoin exchange-traded funds (ETFs) witnessed net outflows amounting to $812.25 million on Friday. This figure marks the second-largest single-day loss ever recorded in the history of these financial instruments. The outflows effectively wiped out a week of consistent gains, driving cumulative net inflows down to $54.18 billion.

The total assets under management for Bitcoin ETFs have now decreased to $146.48 billion, which corresponds to approximately 6.46% of Bitcoin’s market capitalization, as reported by SoSoValue.

Leading the pack in outflows was Fidelity’s FBTC, which experienced redemptions totaling $331.42 million. This was closely followed by ARK Invest’s ARKB with $327.93 million in withdrawals. Grayscale’s GBTC also saw a notable decline of $66.79 million, while BlackRock’s IBIT reported a minimal loss of $2.58 million.

Despite these outflows, trading volumes remained robust, with a total of $6.13 billion exchanged across all spot Bitcoin ETFs. Notably, IBIT alone accounted for $4.54 billion in trading volume, indicating that interest in Bitcoin ETFs persists, even amidst the outflows.

Related: Spot Ether ETF Staking Could ‘Dramatically Reshape the Market’

Ether ETFs Conclude 20-Day Inflow Streak

Shifting focus to the Ether market, Ether ETFs have faced an abrupt halt to their impressive performance, ending a 20-day inflow streak. On Friday, the sector recorded a $152.26 million outflow, bringing total assets under management to $20.11 billion, which is about 4.70% of Ether’s market capitalization.

Leading the losses was Grayscale’s ETHE, which shed $47.68 million. Following closely was Bitwise’s ETHW, with a $40.30 million drop, while Fidelity’s FETH experienced outflows of $6.17 million. The only notable exception was BlackRock’s ETHA, which maintained stability with assets totaling $10.71 billion and recorded neither inflows nor outflows.

The overall trading activity across all spot Ethereum ETFs amounted to $2.26 billion, with Grayscale’s ETH product responsible for the highest daily trades at $288.96 million, reflecting ongoing price volatility in the Ether market.

The recent bullish sentiment around Ethereum reached a peak on July 16, when Ethereum ETFs saw a staggering $726.74 million in single-day inflows, marking the largest figure since the inception of these financial products. The following day also saw significant activity, with $602.02 million flowing into Ethereum, driven by heightened interest in Ether-based investments.

Related: ‘Parabolic Bull Markets and Devastating Bear Markets Are Over’ — BTC Analyst

Corporations Are Accumulating Ether at a Rapid Pace

In an intriguing trend, corporations are now acquiring Ether at double the rate of Bitcoin, according to a report by Standard Chartered. Since the beginning of June, firms involved in crypto treasury management have purchased approximately 1% of Ethereum’s total circulating supply.

This surge in corporate interest, combined with steady inflows into U.S. spot Ether ETFs, has been largely influential in driving Ether’s recent price rally. Analysts at Standard Chartered believe these patterns could propel Ether (ETH) above its $4,000 price target by the end of the year.

Looking ahead, Standard Chartered forecasts that Ethereum treasury holdings may evolve to represent as much as 10% of the entire supply. This speculation is further fueled by the added advantages of staking and participation in decentralized finance (DeFi) platforms.

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