Crypto ETFs Record Nearly $6 Billion in Trading Volume

On August 5, 2024, Bitcoin and Ether ETFs experienced significant trading activity, with nearly $6 billion in volume amid global market volatility. Data from CoinGlass shows that spot Bitcoin ETFs alone saw a daily trading volume of $5.74 billion, with over 50% of this coming from BlackRock’s iShares Bitcoin Trust (IBIT).

This marks the first instance since mid-April 2024 that spot Bitcoin ETFs in the U.S. have surpassed $5 billion in trading volume. Fidelity's FBTC recorded over $858 million in trades, making it the second-highest traded Bitcoin ETF in the U.S. on that day.

Despite an outflow of nearly $148 million, Grayscale’s GBTC trading volume surpassed $693 million, making it the ETF with the third-largest trading amount for the day.

Spot Ether ETFs on their part recorded $715.3 million in trading volume, led mainly by Grayscale’s Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA).

According to Eric Balchunas, senior ETF analyst at Bloomberg, Bitcoin bulls don’t want to see a lot of volume on a bad day, as it is a ‘pretty reliable measure of fear.’

Crypto markets have recovered

Last week, digital asset investment products saw their streak of inflows come to an end, with net outflows totaling $528 million. This shift marked the end of a four-week period of consistent inflows throughout July, as the investment market experienced increased outflows.

Crypto markets have seen a modest rebound after a sharp decline in the past 24 hours, which saw Bitcoin fall below $50,000 for the first time since February 2024. This drop began on August 4, 2024, when it was revealed that trading firm Jump Trading had moved hundreds of millions of dollars in Ether ($ETH) to exchanges.

The downward pressure intensified on August 5, 2024, due to significant losses in the Japanese NIKKEI and the unwinding of the Japanese Yen carry trade, which affected global financial markets.
Meanwhile, the general crypto market decline saw it wipe out $367 billion from its value.
Bitcoin amplified losses from the weekend on Monday, accepting a 7% decline, and Ethereum saw its price dip by 11% in the past 24 hours, stretching its 7-day losses to 24%.

Bitcoin ETFs and Ethereum ETFs see positive flows

Despite the high trading volumes, Bitcoin ETFs mirrored the turmoil in the primary markets, with a total outflow of $168.5 million according to CoinGlass. The Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF (ARKB) each experienced outflows of $69 million, while the Bitwise Bitcoin ETF (BITB) and the Grayscale Bitcoin Mini Trust (BTC) saw inflows of $2.9 million and $21.8 million, respectively.

Grayscale’s Bitcoin Trust (GBTC) experienced a significant outflow of $69.12 million, bringing its total net divestments since Jan. 11, 2024, to $19.13 billion. GBTC wasn’t alone in facing losses; Ark Invest’s and 21shares’ ARKB shed $69 million, while Fidelity’s FBTC saw a $58.04 million decrease, according to sosovalue.xyz and coinglass.com metrics. Since its launch, the BTC Mini Bitcoin Trust has rapidly attracted $240.81 million in inflows. Leading in cumulative inflows is IBIT, with a total of $20.10 billion collected so far. Conversely, the Hashdex DEFI spot BTC ETF has seen the lowest inflows, amounting to just $2.1 million to date.

According to data from SoSoValue, BlackRock’s iShares ETF (ETHA) remains at the forefront of inflows, with a robust $47.09 million in net inflows. After one day of neutral flows and no outflows, ETHA's cumulative net inflows have reached $760 million.

Last week, Ethereum ETFs experienced net outflows of $146 million, bringing their total net outflows since the launch of U.S. spot ETH ETFs to $430 million.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.