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US Bitcoin, Ethereum ETFs hit $6B volume amid market rout

News Feed - 2024-08-06 09:08:09

Felix Ng8 hours agoUS Bitcoin, Ethereum ETFs hit $6B volume amid market routBitcoin plunged to under $50,000 at the start of US trading on Aug. 5, prompting a huge spike in trading volumes of crypto-related ETFs.5226 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe United States Bitcoin and Ether exchange-traded funds (ETFs) recorded nearly $6 billion in trading volume amid market turmoil on Aug. 5. 


According to data from CoinGlass, spot Bitcoin (BTC) ETFs registered a total daily volume of $5.24 billion on the day, with more than half coming from BlackRock’s iShares Bitcoin Trust.


Spot Ether (ETH) ETFs recorded $715.3 million in trading volume, led mainly by Grayscale’s Ethereum Trust and BlackRock’s iShares Ethereum Trust.US spot Bitcoin ETF trading volumes on Aug. 5 Source: CoinGlass


The total volume between the two spot crypto ETF categories amounted to $5.96 billion. 


In an X post earlier in the trading day, Bloomberg ETF analyst Eric Balchunas warned that “crazy volume” during a market rout is generally a “pretty reliable measure of fear.”Source:Eric Balchunas


“On flip, deep liquidity on bad days is part of what traders and institutions love about ETFs, so you also want to see volume too, good for the long term,” he explained. 


Crypto markets began to plunge into the red on Aug. 4 as news emerged of Jump Trading moving hundreds of millions of Ether to exchanges. The price fall dramatically increased yesterday following big falls on the Nikkei and the Japanese yen carry trade unwound, with Bitcoin briefly falling under $50,000 near the start of US trading hours on Aug. 5.


Related:Europe’s fourth largest hedge fund put nearly $500M in Bitcoin ETFs — Filing


Bitcoin has since bounced back slightly to trade above $54,200 at the time of writing.Preliminary inflow data starts to trickle in


Preliminary daily inflow data from CoinGlass before the final tallies show mixed results across Bitcoin and Ether ETFs.


The Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF each posted outflows of $69 million on the day, while the Bitwise Bitcoin ETF and the Grayscale Bitcoin Mini Trust recorded inflows of $2.9 million and $21.8 million, respectively.


The Grayscale Ethereum Trust meanwhile saw outflows of $46.8 million on the day, while Bitwise and Franklin Templeton’s ETFs saw inflows of $7.2 million and $900,000, respectively.


However, in an Aug. 5 post on X, Bloomberg ETF analyst James Seyffart predicts the Bitcoin ETFs will end up with net inflow once all the data is published.Source: James Seyffart 


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