Bitcoin Dips Below $64K, Ether Drags on ETF Outflows

Julie Bang / Investopedia

Important points

Ether fell more than 7% on Thursday, and Bitcoin has recovered somewhat after briefly falling below $64,000.

Spot ether exchange-traded funds (ETFs) recorded $133.3 million in outflows on the second day of trading on Wednesday, while spot bitcoin ETFs recorded $44.5 million in inflows.

Publicly traded bitcoin mining company Marathon has purchased $100 million worth of bitcoin.

Hashdex has taken another step towards launching a combined Bitcoin and Ether ETF.

Bitcoin (BTC) has recovered to trade just above $65,000 after falling below $64,000 early Thursday. Ether (ETH) prices are down more than 7% as investors continue to withdraw funds from Grayscale’s Ethereum Trust (ETHE).

Grayscale’s Ether ETF Outflows Impact Ether Price

After a strong Day 1 with net inflows of $106.6 million overall, spot ether ETFs experienced their first day of net outflows on Wednesday, thanks to $326.9 million exiting the pre-existing Grayscale product. This brings cumulative two-day outflows for Grayscale’s ETHE to $811 million.

These outflows from the Grayscale fund are expected to continue in the near term as investors move to cheaper ETF offerings or exit the market.

Total outflows for spot ether ETFs were $133.3 million on Wednesday, according to Farside Investors. Fidelity Ethereum Fund (FETH) had the strongest day among spot ether ETFs with inflows of $74.5 million.

More Crypto ETF News

The bitcoin side of the spot crypto ETF market saw $44.5 million in inflows on Wednesday, according to Farside Investors.

Crypto asset manager Hashdex has taken another step toward the eventual launch of its proposed Hashdex Nasdaq Crypto Index US ETF by filing Form S-1 with the U.S. Securities and Exchange Commission (SEC). The proposed ETF would start with combined holdings of spot bitcoin and ether, with the potential to add other crypto assets as it receives regulatory approval over time.

Marathon Digital Doubles Down on Bitcoin

Shares of bitcoin miner Marathon Digital Holdings (MARA) surged on Thursday after announcing a $100 million bitcoin purchase. The company not only added to its bitcoin holdings on its books, but also pledged to revert to its previous policy of “full HODL,” a crypto term meaning “hold on for dear life” to all bitcoins it would mine from now on.

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