The U.S. Bitcoin spot ETF market suffered through an unprecedented net outflow of $707 million across five consecutive days. The U.S. analogue, Ethereum spot ETF did no better with $82.5 million in outflows in only four days. Even with these outflows, the current total net asset value of the U.S. Bitcoin spot ETF is still significant at $93.36 billion. Grayscale and Osprey resolve their court case. At the same time, HashKey Exchange has received the green light in Hong Kong to provide staking services. On the other hand, the U.S. SEC approved Ethereum spot ETF to trade options, and Teucrium rolled out a leveraged ETF tied to XRP.
Bitcoin ETF Market Trends
The U.S. Bitcoin spot ETF market experienced a difficult week, highlighted by five straight days of daily net outflows. This came to a cumulative $707 million, marking a truly seismic shift in investor sentiment. Regardless of these outflows, the U.S. Bitcoin spot ETF’s total net asset value is still 93.36 billion USD. It’s a testament to the depth and breadth of market strength that this vibration signal has such resilience.
Individual holdings experienced changes. Harvest Bitcoin's holdings decreased to 302.69 Bitcoins, and Huaxia's holdings decreased to 2160 Bitcoins. These changes illustrate the day-to-day trading patterns and unique fund management practices that characterize the ETF space.
In other news, Grayscale and Osprey have settled their lawsuit over advertising practices towards the new Bitcoin Trust ETF. While the settlement terms are confidential, this settlement brings to a close one area of market uncertainty. This move will allow each firm to devote attention and resources to their ETF franchises.
Ethereum ETF and Options
The U.S. Ethereum spot ETF market faced a net outflow of $82.5 million across four days. The U.S. Ethereum spot ETF currently has a total net asset value of $5.24 billion. In sharp contrast, the Hong Kong Ethereum spot ETF had robust net inflow of 98.67 Bitcoins. This overall increase produced a net asset value of $3.102 million.
The U.S. SEC has recently cleared Ethereum spot ETF options trading. This ruling creates new opportunities for investors to hedge against risk and speculate on movements in the price of Ethereum. The related notation total USD Bitcoin spot ETF options trading volume hit $1.83 billion. The current nominal total long-short ratio of the U.S. Bitcoin spot ETF options is 3.69. At the same time, the implied volatility is at 56.64%.
Teucrium also recently launched a leveraged ETF tied to the cryptocurrency XRP. This is the first product available in the U.S. market that provides that type of exposure. This offers investors a new way to double up their investments on XRP’s price movements.
Regulatory Developments and Staking Services
Just a week later on April 10, HashKey Exchange received approval from the Hong Kong SFC. This positions them as one of the first exchanges in Hong Kong to be licensed to provide staking services. With this regulatory achievement, HashKey Exchange is well-positioned to be at the forefront of providing cutting-edge services within the burgeoning digital asset ecosystem. This allows the exchange to offer more popular staking options to meet increasing demand from users.
"HashKey Exchange has built a regulatory-compliant staking service system, leading the way in providing ETH staking services for spot ETFs, and is actively promoting staking services for all clients." - Terence Pu, HashKey Exchange's Managing Director
This announcement highlights the exchange’s focus on remaining regulatory compliant while illustrating the trade’s proactiveness to broaden its service offerings. This is especially true when the development of a regulatory-compliant staking service system can promote greater confidence and participation in the digital asset market.
