Arrangement: Fairy, ChainCatcher
Crypto Spot ETF Performance Last Week
From September 23 to 26, global Bitcoin spot ETF holdings increased by 9,100 Bitcoins. Except for Grayscale, the US Bitcoin spot ETF increased its holdings by 9,700 Bitcoins, becoming the main force of inflows. Bitcoin spot ETFs in Canada and Germany saw a slight reduction in holdings. Overall, this month's holdings turned from reduction to increase, with a cumulative increase of 7,013 Bitcoins.
Data from @Phyrex_Ni
US Bitcoin spot ETF net inflows of $1.106 billion
Last week, the US Bitcoin spot ETF saw a large inflow, with a net inflow of $1.106 billion. The inflow on September 27th set a record for the highest single-day inflow since early June, reaching a nearly 4-month high.
Grayscale GBTC was the only ETF with a net outflow of $21.8 million. BlackRock IBIT had the highest inflow of $499 million, ending two consecutive weeks of low liquidity. At the same time, BlackRock Global Allocation Fund also increased its holdings of BlackRock's Bitcoin spot ETF.
Source: Farside Investors
US Ethereum spot ETF net inflow of $85 million
Last week, the US Ethereum spot ETF had a net inflow of $85 million. Only Grayscale ETHE was in a net outflow state, with an outflow of $127.3 million.
BlackRock’s Ethereum spot ETF had the highest net inflow of $95.5 million, and its assets exceeded $1 billion, currently ranking in the top 20% of more than 3,700 ETFs, in just 2 months.
Source: Farside Investors
Liquidity of Hong Kong Bitcoin Spot ETF Remains Low
Last week, the liquidity of Hong Kong's crypto ETFs remained sluggish, with a net outflow of 15.94 bitcoins from the Hong Kong Bitcoin spot ETF. On September 26, the trading volume of the Bitcoin spot ETF reached US$3.42 million, the highest level in nearly 10 days.
There was no fund flow in the Ethereum spot ETF, and the total net asset value was $38.91 million. The Ethereum spot ETF data for September 25 was not released, and there may be errors.
Data: SoSoValue
An overview of crypto ETF activity last week
The U.S. SEC has postponed its decision on BlackRock and Bitwise’s Ethereum spot ETF options trading applications, with the latest deadlines being November 10 and November 11, respectively. The SEC said it needed more time to consider the proposal and extended the initial 45-day review period.
Bank of New York Mellon has been approved by the U.S. SEC to provide cryptocurrency custody services. Gary Gensler, chairman of the U.S. Securities and Exchange Commission, said that Bank of New York Mellon's digital asset custody service structure can be applied to cryptocurrencies other than Bitcoin and Ethereum ETFs.
Gensler said BNY Mellon’s proposed structure involves the use of individual crypto wallets, each with a separate bank account and a ban on commingling with bank assets.
Opinions and analysis on crypto ETFs
Analyst: Bitcoin spot ETF options may affect the demand for underlying assets
The U.S. Securities and Exchange Commission (SEC) recently approved BlackRock to list and trade its spot Bitcoin options, and CryptoQuant analysts noted that "the launch of options on the IBIT ETF could increase the 'paper' supply of Bitcoin, as institutional investors can gain exposure to Bitcoin without directly purchasing Bitcoin. Options on the spot Bitcoin ETF means that the 'paper' supply of Bitcoin will increase, and institutional investors can gain exposure to Bitcoin by buying and selling options without investing through the spot market. They can hold a long position in Bitcoin through options without actually buying Bitcoin, or short options without buying Bitcoin first."
Derivatives trader Gordon Grant discussed the impact of this trend and compared it to the gold market. He stressed that although "paper" transactions account for a large portion of total transaction volume, physical demand is still needed to support this supply. He also stated that "Although paper gold trading accounts for a significant share of the total average daily trading volume, the same is true for spot trading. Although the open interest in the paper market may increase significantly, at some point, paper supply will inevitably require paper Surface demand, which involves physical support.
Chairman of the Hong Kong Securities and Futures Commission: The market value of the first batch of virtual asset ETFs has exceeded US$300 million, and more tokenization use cases will be explored
In his speech at the event, Lui Tim-leung, Chairman of the Hong Kong Securities Regulatory Commission, said that Hong Kong's first batch of virtual asset spot exchange-traded funds (ETFs) have been trading in an orderly manner since their listing in April, and their current market value has exceeded US$300 million. In addition, the launch of the first Asian virtual asset futures ETF product will allow retail investors to manage related risks. He believes that innovative products can drive Hong Kong's financial market forward.
Lui Tim-leung stressed that as a financial centre, Hong Kong needs to continue to enhance its resilience through innovative technologies, sustainable finance and other fields. He has also noticed that blockchain technology can bring potential advantages such as reducing transaction costs, among which the tokenization of assets and securities can become one of the main use cases. He is currently working closely with the Hong Kong Monetary Authority to explore more different tokenization use cases, hoping to establish a relevant ecosystem.
