The crypto market collapse provoked a sharp increase in trading activity of exchange-traded funds based on spot quotes of Bitcoin and Ethereum in the United States. The total trading volume of spot crypto ETFs reached ~$6 billion.
According to CoinGlass data, on August 5, spot Bitcoin ETFs registered a daily trading volume of $5.24 billion and spot Ethereum ETFs recorded a daily trading volume of $715.3 million. The total trading volume was $5.96 billion.
The most popular Bitcoin-based fund was BlackRock’s iShares Bitcoin Trust (IBIT), which accounted for more than half of the daily trading volume — $2.95 billion. Among spot Ethereum ETFs, the most productive were products from Grayscale and BlackRock — $262 million and $208 million, respectively.
The inflow and outflow figures of crypto funds turned out to be quite mixed. On August 5, spot Bitcoin ETFs lost about $168 million, while spot Ethereum ETFs attracted over $48 million. Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF had an outflow of about $69 million over the day, while Bitwise Bitcoin ETF and Grayscale Bitcoin Mini Trust recorded inflows of $2.9 million and $21.8 million, respectively. Grayscale Ethereum Trust saw outflows of $46.8 million over the day, while spot Ethereum ETFs from Bitwise and Franklin Templeton attracted $7.2 million and $900,000, respectively.
Analysts’ opinions on the market situation remain uncertain. According to Eric Balchunas, ETF Analyst at Bloomberg, high trading volume against the background of collapsing quotations may indicate the fear of investors. At the same time, in his opinion, crypto ETFs show high liquidity even given the falling crypto market, which emphasizes the prospects of these exchange-traded products.
Indirect confirmation of the opinion about the prospects of exchange-traded funds was the news that Capula Management, the fourth largest hedge fund in Europe, invested about $464 million in spot Bitcoin ETFs. Official data says that the hedge fund invested in Fidelity Wise Origin Bitcoin Fund (FBTC) and iShares Bitcoin Trust (IBIT) from BlackRock.
The cryptocurrency market experienced a sharp drop in quotes this past weekend. BTC fell below $50,000 at one point, pulling altcoins into the red zone and provoking mass liquidations. As of 13:00 a.m. (GMT+3) on August 6, according to CoinGecko, BTC is $55,200, ETH — $2,460, and the total cap of the crypto market increased by 5.2% to $2.04 trillion over the day.
