Ether ETFs’ Quiet Debut, Bitcoin ETFs See Outflows

Julie Bang / Investopedia

Important points

Bitcoin is approaching $67,000 again as ether falls to $3,400.

Spot ether ETFs saw $1 billion in trading volume and $107 million in inflows on their first day.

Spot Bitcoin ETF flows turned negative for the first time since July 3.

The Mt. Gox heir sent $335.8 million worth of Bitcoin to Bitstamp, but the distributions are unlikely to lower the price of Bitcoin.

Bitcoin (BTC) is once again approaching $67,000, while ether (ETH) is trading around $3,400. Ether, in particular, fell 1.6% on Wednesday, a day after spot ether exchange-traded funds (ETFs) were launched on U.S. markets.

Ether ETFs’ First Day Is Over, Bitcoin ETFs Are Seeing a Breakout

Spot ether ETFs saw more than $1 billion in transactions on their first day, leading to $107 million inflows into these new products. For now, outflows from the pre-existing Grayscale Ethereum Trust (ETHE) are likely to limit the combined net inflows for spot ether ETFs.

While spot bitcoin ETFs have seen strong inflows in recent weeks, yesterday saw the first day of outflows since July 3, according to Farside Investors. Despite net outflows for these products overall, BlackRock’s iShares Bitcoin Trust (IBIT) still saw inflows of $71.9 million. May 1 remains the only time in IBIT’s short history that it has had a net outflow day.

Bitcoin Price Slightly Impacted by Mt. Gox Distributions

Funds from the legacy of bankrupt bitcoin exchange Mt. Gox are still being distributed to former clients, with blockchain analytics provider Arkham Intelligence reporting that $335.8 million worth of bitcoin was sent to Bitstamp this morning.

Kraken Chief Executive Officer (CEO) Dave Ripley announced that the exchange has distributed funds to creditors from the Mt. Gox estate. The Mt. Gox estate previously sent more than $3 billion worth of bitcoin to Kraken.

However, some analysts say the selling pressure from these distributions is expected to be limited and not have a negative impact on the price of bitcoin, as seen when the German government sold $2.4 billion worth of bitcoin in a single week earlier this month. The Mt. Gox estate still holds more than $5 billion worth of bitcoin.

Bitcoin Related Stocks

Coinbase (COIN) stock fell 1.1% as of 13:45 GMT on Wednesday, despite being appointed as custodians for eight of the nine spot ether ETFs that began trading yesterday.

Bitcoin-focused financial services provider Fold has announced an agreement to go public by merging with a special purpose acquisition company (SPAC) later this year.

Riot Platforms (RIOT) announced on Tuesday that it has acquired bitcoin miner Block Mining in an effort to expand Riot’s own mining capacity. Riot shares were trading 1.2% higher.

Read the original article on Investopedia.