On August 5, the United States Bitcoin and Ether ETFs saw a significant surge in trading volume, reaching nearly $6 billion amidst a turbulent market. Data from CoinGlass reveals that spot Bitcoin ETFs recorded a staggering $5.24 billion in daily trading volume, with BlackRock’s iShares Bitcoin Trust (IBIT) accounting for over half of this amount. Meanwhile, spot Ether ETFs accumulated $715.3 million in trading volume, driven primarily by Grayscale’s Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA).
The combined volume for these two categories of spot crypto ETFs totaled $5.96 billion, underscoring the heightened activity in the market. Bloomberg ETF analyst Eric Balchunas noted on X that such “crazy volume” during a market rout often serves as a “pretty reliable measure of fear.” However, he also highlighted that high liquidity on down days is advantageous for traders and institutions, making it beneficial for the long-term health of the market.
The crypto market’s decline began on August 4, following reports of Jump Trading transferring hundreds of millions of Ether to exchanges. The situation was exacerbated by significant drops in the Nikkei and the unwinding of the Japanese yen carry trade. This market shake-up saw Bitcoin briefly dip below $50,000 early on August 5 before recovering slightly to trade above $54,200.
In addition to the dramatic trading volumes, preliminary inflow data shows mixed results for Bitcoin and Ether ETFs. On August 5, the Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF (ARKB) experienced outflows of $69 million each. Conversely, the Bitwise Bitcoin ETF (BITB) and Grayscale Bitcoin Mini Trust (BTC) saw inflows of $2.9 million and $21.8 million, respectively. The Grayscale Ethereum Trust faced outflows of $46.8 million, while the Bitwise and Franklin Templeton Ethereum ETFs recorded inflows of $7.2 million and $900,000 respectively.
Despite the fluctuations, Bloomberg ETF analyst James Seyffart anticipates that Bitcoin ETFs will end the period with a net inflow once all data is finalized. This trend highlights the continued interest and investment in Bitcoin and Ether despite the recent market volatility.
August 2024, Cryptoniteuae