The two existing crypto ETFs recorded no inflows yesterday as the crypto market was hit with another slump. The Bitcoin ETFs saw only exits, while Ethereum ETFs recorded no single transaction across all nine funds. The abysmal performance of the ETF products aligns with the current market trend, which is highly bearish following the continuation of Donald Trump’s tariff debacle.
The traditional US stock market and crypto companies’ stocks tumbled as investors reacted to a looming trade war between geopolitical powers, pulling away from risk assets. Bitcoin dropped below $80,000, with the remaining top 9 crypto assets by market cap all shedding price value in the last 7 days.
The Total market capitalization of all crypto assets dropped from $2.7 trillion on April 1st to $2.5 trillion at the time of the report, shedding $200 billion in seven days.
Bitcoin ETFs Lose $103.9 million.
The 11 Bitcoin ETFs shed $103.9 million, recording no inflows for the day following a severe market downturn. Farside Investor’s UK revealed that Grayscale’s GBTC led the day’s outflows, losing $74.0 million, while Investco’s BTCO shed $12.9 million. The remaining Bitcoin ETFs witnessed outflows of less than $10 million, leading to a net outflow of $103.9 million.
Ethereum ETFs Record No Transaction
The nine Ethereum ETFs recorded no transaction yesterday, and the nine funds are stuck at 0.0. This represents the worst investor flight case since last year’s ETFs launch.
Read More: Bitcoin ETFs Record $218 Million Net Inflow Ending Three Days of Exit
Before yesterday, the Ethereum ETFs had seen three consecutive days of outflows, losing $58.5 million. Since their launch last July, the ETFs have severely underperformed, failing to meet expectations.
What is an ETF?
An exchange-traded Fund is a financial product that pools money from many investors to buy a diversified basket of assets like stocks, bonds, or commodities and trades on a stock exchange like a single stock. ETFs are usually issued by asset management firms like Blackrock, which has the most significant Bitcoin ETF in inflows.
Other Asset managers, such as Fidelity, Grayscale, Bitwise, and Ark 21 shares, also have Bitcoin ETF products with varying inflows according to the size of their client base. Crypto ETFs are crypto-backed ETFs tied to the price value of crypto assets, giving investors exposure to crypto assets without them owning it. Examples include Blackrock’s IBIT and Fidelity’s FBTC.
