Cryptocurrency ETF Weekly | Last week, the net inflow of Bitcoin spot ETFs in the U.S. was $920 million; BlackRock met with the U.S. SEC's cryptocurrency working group to discuss staking and options for cryptocurrency ETFs
BlackRock's Bitcoin spot ETF has seen inflows this year surpassing those of the world's largest gold ETF.Organizer: Jerry, ChainCatcher
Last Week's Performance of Crypto Spot ETFs
US Bitcoin Spot ETF Net Inflow of $920 Million
Last week, the US Bitcoin spot ETF had a net inflow over four days, totaling $920 million, with total assets under management reaching $11.866 billion.
Four ETFs were in a net inflow state last week, with inflows mainly from IBIT, FBTC, and ARKB, which saw inflows of $1.03 billion, $62.4 million, and $45.6 million, respectively.
Data Source: Farside Investors
US Ethereum Spot ETF Net Outflow of $38.2 Million
Last week, the US Ethereum spot ETF experienced a net outflow over three days, totaling $38.2 million, with total assets under management reaching $722 million.
The outflow mainly came from Fidelity's FETH, which had a net outflow of $37.2 million. A total of six Ethereum spot ETFs had no fund movement.
Data Source: Farside Investors
Hong Kong Bitcoin Spot ETF Net Inflow of 23.71 Bitcoins
Last week, the Hong Kong Bitcoin spot ETF had a net inflow of 23.71 Bitcoins, with total assets under management reaching $42.9 million. The issuer, Harvest Bitcoin, saw its holdings decrease to 302.19 Bitcoins, while Huaxia increased to 2,200 Bitcoins.
The Hong Kong Ethereum spot ETF had no fund inflow, with total assets under management at $3.863 million.
Data Source: SoSoValue
Performance of Crypto Spot ETF Options
As of May 9, the nominal total trading volume of US Bitcoin spot ETF options was $1.82 billion, with a nominal total long-short ratio of 2.27.
As of May 8, the nominal total open interest of US Bitcoin spot ETF options reached $14.89 billion, with a nominal total long-short ratio of 9.10.
The market's short-term trading activity for Bitcoin spot ETF options has increased, with overall sentiment leaning bullish.
Additionally, the implied volatility was 50.33%.
Data Source: SoSoValue
Overview of Last Week's Crypto ETF Dynamics
BlackRock Meets with US SEC Crypto Working Group to Discuss Staking and Options for Crypto ETFs
According to The Block, representatives from BlackRock met with members of the US SEC's crypto working group to discuss methods for addressing regulatory issues related to crypto assets, including staking and options for cryptocurrency exchange-traded funds.
Documents indicate that the meeting discussed "considerations for promoting ETPs with staking functions" and parameters for determining crypto ETF options positions and exercise limits, including liquidity thresholds. Additionally, BlackRock discussed specific standards for approving crypto ETFs.
Tidal Financial Group Plans to Launch Two Bitcoin and Gold Hedge ETFs
According to Bloomberg, Tidal Financial Group's Battleshares brand has submitted an application to the US SEC to launch two Bitcoin and gold hedge ETFs. The product will allow investors to directly bet on the relative performance of the two asset classes through shorting securities, swap contracts, and options. Counterpoint's chief strategist Dhaval Joshi believes that Bitcoin will gradually erode gold's market share, and a long BTC/short gold combination has more potential in the long run.
This year, gold has reached new highs due to safe-haven demand, while Bitcoin fell in sync with risk assets during the tariff turmoil in April but has recently rebounded strongly with the advancement of US digital finance policies. Brent Donnelly, president of Spectra FX, pointed out that Bitcoin remains highly correlated with the Nasdaq 100 index, while gold reflects "shorting the US" sentiment. Data shows that the four major gold ETFs have attracted over $14 billion this year, while leading Bitcoin ETFs have seen $8 billion in inflows.
Harvest Portfolios to List Two Bitcoin ETFs on Cboe Canada
Cboe Canada, a subsidiary of the Chicago Mercantile Exchange, announced that it will list two Bitcoin exchange-traded funds from asset management company Harvest Portfolios: Harvest Bitcoin Enhanced Income ETF (HBIX) and Harvest Bitcoin Leaders Enhanced Income ETF (HBTE). Both Bitcoin ETFs reportedly employ an actively managed covered call strategy and moderate leverage.
BlackRock's Bitcoin Spot ETF Year-to-Date Inflows Exceed Those of the World's Largest Gold ETF
According to CoinDesk, despite Bitcoin's year-to-date increase of 3.8% being far less than gold's 29% surge, BlackRock's spot Bitcoin ETF (IBIT) still ranks sixth in the US ETF inflow rankings with $6.96 billion in net inflows, surpassing the world's largest gold ETF (GLD) at $6.5 billion. This phenomenon indicates that institutional investors remain optimistic about the long-term value of cryptocurrencies.
Gold has benefited from geopolitical tensions and inflation concerns, reaching $3,384 per ounce, while Bitcoin has fallen over 10% from its January all-time high. Analysts point out that the continued inflow during periods of price weakness confirms Bitcoin's asset allocation value as "digital gold," and it is expected that the scale of BTC ETFs will reach three times that of gold ETFs within 3-5 years.
Leading South Korean Presidential Candidate Promises to Approve Bitcoin ETFs
According to the Korea Economic Daily (KED), Lee Jae-myung, leader of the Democratic Party of Korea, has become the latest presidential candidate to promise to approve spot cryptocurrency exchange-traded funds (ETFs) and other crypto-friendly measures if elected. Lee announced his cryptocurrency commitment on May 6 as part of a broader initiative to provide more investment opportunities for South Korea's youth, who are a primary target demographic in the upcoming June 3 election.
KED quoted Lee in Korean saying, "I will create a safe investment environment for young people to [accumulate] assets and plan for the future." He also promised to legalize spot cryptocurrency ETFs, reduce trading fees, and implement more consumer protection measures.
Defiance Launches Four ETFs Tracking Long and Short Positions in Bitcoin, Ethereum, and Gold
According to filings submitted by Defiance ETFs, LLC to the US Securities and Exchange Commission (SEC), the firm has applied for four new exchange-traded funds, including:
- Bitcoin vs. Ethereum ETF: Long BTC, Short ETH;
- Ethereum vs. Bitcoin ETF: Short BTC, Long ETH;
- Bitcoin vs. Gold ETF: Long BTC, Short Gold;
- Gold vs. Bitcoin ETF: Short BTC, Long Gold.
Each fund reportedly tracks the leveraged performance of one asset relative to another through derivatives and employs an actively managed approach, seeking total returns through synthetic exposure to the underlying assets. These funds do not hold spot assets but instead establish leveraged exposure using a combination of futures contracts, swaps, options, and ETFs or exchange-traded products (ETPs) listed in the US.
Bitwise Has Submitted a Listing Application for a Spot NEAR ETF to the US SEC
According to Cointelegraph, digital asset management firm Bitwise has submitted a listing application for a spot NEAR ETF to the US Securities and Exchange Commission, adding a new contender to the growing list of alternative coins vying for regulatory approval.
Bitwise's registration statement for the Bitwise Near ETF, dated May 6, indicates that the ETF will track the price movements of the NEAR token through traditional brokers, net of fees. Bitwise has designated Coinbase Custody as the custodian for the Bitwise NEAR ETF. The management fee, stock code, and listing exchange for the Bitwise NEAR ETF have yet to be determined.
US SEC Delays Decision on Canary Capital's Litecoin Spot ETF Application
According to former Fox Business reporter Eleanor Terrett, the US Securities and Exchange Commission (SEC) has delayed its decision on Canary Capital's application for a Litecoin (LTC) spot ETF and has initiated a public comment period to assess whether the ETF meets regulatory requirements to prevent fraud and manipulation. The comment period ends on May 26 (Beijing time May 27), and the rebuttal period ends on June 9 (Beijing time June 10).
This delay aligns with Bloomberg analyst James Seyffart's expectation yesterday that "it is highly likely they will choose to delay making a final decision rather than directly approving or rejecting it."
VanEck's On-Chain Economy ETF (NODE) to Officially Launch on May 14
Market News: VanEck Submits S-1 Filing for BNB ETF
Views and Analysis on Crypto ETFs
Bloomberg's senior ETF analyst Eric Balchunas posted on X platform that many criticized VanEck's submission of the BNB ETF application yesterday.
However, knowing some of Zhao Changpeng's statements from last week, it is clear that he is advising multiple governments on establishing cryptocurrency reserves and has suggested including BNB in those reserves, which may be why Jan VanEck took notice and acted. Again, this is just a hypothetical thought, but the logic is very clear.
Bloomberg's senior ETF analyst Eric Balchunas posted on social media that "IBIT absorbed another $500 million yesterday, marking 15 consecutive days of inflows, currently ranking sixth in annual inflows, surpassing GLD.
Considering that IBIT has only risen 4% while GLD is in a historically strong performance period, attracting more inflows under these circumstances is a very good sign for the long-term outlook and strengthens our confidence in the prediction that Bitcoin ETF assets under management will reach three times that of gold ETFs in 3-5 years."
QCP Capital released a market analysis indicating that last Friday's macro data provided a detailed snapshot of the US economy, with non-farm payrolls increasing by 177,000, exceeding expectations of 133,000, and the unemployment rate stabilizing at 4.2%. However, behind the strong data, economists continue to warn that the full economic impact of recent tariff increases has yet to be seen, and the market remains cautiously optimistic.
Meanwhile, the market generally expects the Federal Reserve to maintain interest rates at this week's policy meeting. Despite recording a historic high in first-quarter losses, Strategy has doubled its financing target to $84 billion, with this loss attributed to the adoption of new digital asset fair value accounting standards, highlighting the company's firm belief in its long-term Bitcoin strategy. At the same time, the steady inflows into spot Bitcoin ETFs indicate ongoing institutional demand and reinforce the growing role of this asset in diversified portfolios.
Bloomberg Analyst: US SEC May Delay Approval of Canary LTC ETF This Monday, But Still Worth Watching
Bloomberg senior ETF analyst James Seyffart analyzed that "Canary Capital's Litecoin ETF application will have a decision made before May 5 (which may be delayed). The SEC has pre-approved and delayed many applications, but not this time. If any asset has a chance of being approved early, in my view, it is Litecoin. I personally think the likelihood of a delay is greater, but it is definitely worth watching."
