- Fidelity’s Ethereum Fund had over $25 million in earnings in just one day.
- Bitcoin ETFs also lost more than $290 M on the same day.
- Despite cuts, trading volumes for these funds remained strong and showed constant commitment.
On October 1, 2024, the Fidelity Ethereum Fund saw over $25 million in revenue losses. This represents the largest daily withdrawal for U.S.-based spot Ether exchange-traded funds, excluding the Grayscale Ethereum Trust. Geopolitical tensions have escalated and affected investor confidence, leading to widespread migrations in the cryptocurrency industry.
Ethereum ETF Market Dynamics
The total outflows from Ethereum ETFs reached $48.6 million across nine issuers. Grayscale’s Ethereum Trust led with $26.6 million in withdrawals. Consequently, Fidelity’s Ethereum Fund followed closely by losing $25 million in one day. Bitwise’s Ethereum ETF recorded withdrawals of about $895,650. Other spot Ethereum ETFs maintained stability and showed no significant changes.
These rapid outflows raise questions about the sustainability of Ethereum investments. Despite the current turmoil, Fidelity’s Ethereum Fund remains the second-highest in total investments with about $453.5 million. However, the speed of withdrawals indicates growing concern among investors.
Bitcoin ETFs Encounter Similar Issues
The challenges in the cryptocurrency market extended to Bitcoin ETFs, which also faced considerable outflows. Over $290 million left Bitcoin ETFs on October 1 and disrupted a positive inflow trend that had added $1.42 billion to these funds over the previous eight days. Fidelity’s FBTC ETF recorded the largest outflow by losing $144.7 million.
Moreover, ARK 21Shares’ ARKB ETF experienced $84.3 million in withdrawals. Other funds like Bitwise’s BITB and VanEck’s HODL saw declines of $32.7 million and $15.8 million. Grayscale’s Bitcoin Trust recorded a smaller decrease of $5.9 million, while other Bitcoin ETFs showed no outflows.
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Resilient Trading Volumes Amid Outflows
Despite massive outflows, sale volumes across digital asset ETFs remained strong. Bitcoin ETFs recorded a trading volume of $2.53 billion on October 1, which shows continuing support from fund managers. Since their inception, these securities have attracted a total of $18.62 billion in net inflows.
Nevertheless, cumulative net revenues from Ethereum ETFs have reached $572.31 million since their first public offering. This trend reflects the challenges investors face amid rising geopolitical tensions.
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