US Bitcoin and Ethereum ETFs Surge to $6 Billion Volume Amid Market Downturn

On August 5, Bitcoin experienced a significant decline, dropping below $50,000 at the onset of trading in the United States. This sharp drop led to a dramatic rise in trading volumes for crypto-related exchange-traded funds (ETFs).

Major Volume Figures

During the tumultuous market conditions, Bitcoin and Ether ETFs collectively saw nearly $6 billion in trading volume.

• Bitcoin ETFs recorded a total daily volume of $5.24 billion, largely driven by BlackRock’s iShares Bitcoin Trust (IBIT).
• Eithere ETFs achieved trading volumes of $715.3 million, with Grayscale’s Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) leading the way.

Overall, the combined volume from both types of spot crypto ETFs reached $5.96 billion.

Market Reactions

As the crypto markets began to decline on August 4, following reports of Jump Trading transferring substantial amounts of Ether to exchanges, the downturn escalated. Concurrently, global stock markets, notably the Nikkei, also experienced significant drops.

Despite the market’s turmoil, Bitcoin managed to recover slightly, trading at $54,288 according to data from CoinMarketCap.

Preliminary Inflow Data

Initial data for daily inflows reveals a mixed bag for Bitcoin and Ether ETFs:

• Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF (ARKB) posted outflows of $69 million.
• Conversely, Bitwise Bitcoin ETF (BITB) and Grayscale Bitcoin Mini Trust (BTC) noted inflows of $2.9 million and $21.8 million, respectively.
• Grayscale Ethereum Trust faced outflows of $46.8 million, while Bitwise and Franklin Templeton’s ETFs recorded inflows of $7.2 million and $900,000 respectively.

Bloomberg ETF analyst James Seyffart has expressed optimism, predicting that Bitcoin ETFs are likely to conclude with a net inflow once all figures are finalized.