- Bitcoin ETFs are recovering from their weeks-long underperformance.
- The majority of the US-based issuers are seeing improved inflows.
- Anticipation is mounting for the approval of Ethereum ETFs.
The rocky past weeks in crypto have left barely any assets untouched, rippling through both major and minor players with severe losses. Among the hardest hit is Bitcoin, which has suffered significant price declines, impacting the U.S.-based exchange-traded funds tied to it with severe outflows.
However, a reversal of fortunes has seen the path of issuers take a turn for the better.
Bitcoin ETFs Post Modest Gains
The seven-day string of losses for U.S. Bitcoin ETF issuers flipped to positive on Wednesday, June 26, 2024, when a good number of these issuers saw their daily outflows turn into inflows. Leading the charge, according to Farside Investors, was Fidelity’s FBTC, with a combined $67.4 million in inflows over a two-day period.
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Following suit were Bitwise’s BITB, with a total of $15.2 million, and VanEck’s HODL, with a total of $6.9 million. However, the good fortune did not extend to all issuers, as both Ark 21 Shares and Grayscale recorded outflows totaling $11.1 million and $30.3 million, respectively. The other five issuers, including BlackRock’s IBIT, did not record any inflows.
The recovery in Bitcoin ETFs coincides with the positive hints by Bitcoin in the past two days, which has seen the crypto giant mount an approximate 5% increase from its weak low point of $59,000. While the combined $52.4 million inflows mark a significant recovery from the long trend of losses over the past week, it remains significantly lower than the over $700 million in withdrawals across the ten issuers.
Despite the recent underperformance of Bitcoin ETFs, optimism across the market remains high for their Ethereum counterparts.
Ethereum ETF Set for Greenlight?
For the past months, Ethereum ETFs have become the buzz across the industry, driven by the mounting anticipation that the SEC will roll out regulatory approval.
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While the prospects for the proposed investment vehicle were once diminishing, renewed actions by the commission have reignited hopes for approval, heating up anticipation among investors and issuers alike.
Recent optimistic remarks from SEC chair Gary Gensler, who once maintained a tight-lipped and lukewarm approach to the proposals also fueled optimism for an imminent approval. This has prompted a flurry of predictions among analysts on the likely timeframe for approval, with many asserting early July as a plausible timeframe for the approval and launch of the proposed investment vehicle.
The potential approval of Ethereum ETFs is also fueling hopes for a better recovery for Bitcoin, expected to propel the crypto king and its exchange-traded products to new highs.
On the Flipside
- At press time, Bitcoin is trading at $61,961.
- Analysts have predicted Ethereum ETFs to match Bitcoin’s success and garner up to $15 billion within their first months of launch.
- Bitcoin ETF issuer VanECK has recently filed for a Solana ETF with the SEC.
Why This Matters
The recovery witnessed across Bitcoin ETFs, while minimal, signals shifting investor sentiment and engagement by investors as BTC regains traction. However, the sustainability of the upward momentum is contingent on Bitcoin’s ability to maintain its current path.
Read more about the major outflows recorded for US Bitcoin ETF issuers:
Bitcoin ETFs See $226.2M Outflows as BTC Trades Below $67K
The newly freed Julian Assange is receiving Bitcoin donations, read more:
Anonymous Bitcoin Donation Eases Julian Assange’s Jet Debt
