It wasn’t a smooth ride for Bitcoin ETFs this week. The U.S.-based spot funds closed with negative outflows, breaking a solid streak since early September. The total net assets dropped like a falling satoshi—from $61.21 billion on Sept. 27 to $57.73 billion by Oct. 4. Bitcoin’s price did no favors, sinking from $65,000 to around $62,000, dragging the ETF market into the abyss.
Friday brought a flicker of hope with a modest inflow of $25.6 million across the Bitcoin ETF universe. Bitwise’s BITB fund snatched the largest chunk, seeing a $15.3 million inflow. Fidelity’s FBTC ETF followed close with $13.6 million, while both VanEck’s HODL and Ark & 21Shares’ ARKB scraped by with $5.29 million each. But it wasn’t enough to stop the week’s net bleeding.
Bitwise Switches Up Its Strategy
Bitwise is not sitting still. The firm is overhauling its crypto futures ETFs by blending them with Treasuries, hoping to tame the volatility beast. As Bitwise Chief Information Officer Matt Hougan said, “The goal is to help minimize downside volatility and potentially improve risk-adjusted returns.” They’re changing lanes, trying to give investors a little more stability.
Still, Grayscale’s GBTC fund found itself on the wrong side of the flows, shedding $13.9 million in outflows by Friday. The rest of the funds sat in silence, with no major moves recorded.
Ethereum ETFs Struggle Alongside Bitcoin
The Ethereum ETF landscape wasn’t spared either, ending the week with a net negative outflow of $30.7 million. Even with $7.4 million flowing in on Friday, Ether funds couldn’t escape the market downturn. BlackRock’s ETHA fund showed some muscle with $14.7 million in inflows, while Bitwise’s ETHW ETF added a modest $871,000.
But those gains were offset by $8.2 million in outflows from Grayscale’s ETHE fund. Ethereum’s price took a beating too, dropping from $2,700 to $2,400 by week’s end. BlackRock’s Ethereum fund, which had recently crossed the billion-dollar mark, slipped back to $987.6 million in assets.
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