Cryptocurrency ETF Weekly Report | Last week, US Bitcoin spot ETF net inflow was $568 million; US Ethereum spot ETF net inflow was $23.5 million

Editor: Jerry, ChainCatcher

Last Week’s Cryptocurrency Spot ETF Performance

US Bitcoin Spot ETF Net Inflows $568 Million

Last week, the US Bitcoin spot ETF experienced a three-day net inflow totaling $568 million, with total assets under management reaching $87.07 billion.

Nine ETFs were in net inflow status last week, mainly driven by IBIT, BTC, and EZBC, which saw inflows of $660 million, $46 million, and $22.5 million respectively.

Data Source: Farside Investors

US Ethereum Spot ETF Net Inflows $23.5 Million

Last week, the US Ethereum spot ETF had a two-day net inflow totaling $23.5 million, with total assets under management reaching $11.28 billion.

The inflows mainly came from Grayscale ETHE, with a net inflow of $138 million. Six Ethereum spot ETFs were in net inflow status.

Data Source: Farside Investors

Hong Kong Bitcoin Spot ETF No Capital Inflows

Last week, the Hong Kong Bitcoin spot ETF saw no capital inflows, with assets under management at $274 million. The issuer,嘉实比特币, held 219.59 BTC, while 华夏 maintained 2,510 BTC.

Hong Kong Ethereum spot ETF experienced a net outflow of 497.74 ETH, with assets valued at $65.92 million.

Data Source: SoSoValue

Cryptocurrency Spot ETF Options Performance

As of March 6, the US Bitcoin spot ETF options had a total notional trading volume of $1.01 billion, with a long/short ratio of 1.49.

As of March 5, the total notional open interest for US Bitcoin spot ETF options reached $25.04 billion, with a long/short ratio of 1.54.

Market activity for Bitcoin spot ETF options has decreased in the short term, with overall sentiment leaning bullish.

Additionally, implied volatility stands at 53.97%.

Data Source: SoSoValue

Last Week’s Cryptocurrency ETF Highlights

Nasdaq Removes All Limits on Bitcoin ETF Access

According to Crypto Tice, Nasdaq has eliminated all caps, restrictions, and limits on Bitcoin ETFs on its platform. As the second-largest global exchange, this move means institutions, funds, and traders now have unlimited access to Bitcoin.

The exchange didn’t just open the channels but completely removed related entry barriers.

21Shares Launches US’s First Physical Polkadot ETF

Asset management firm 21Shares has launched the US’s first physical Polkadot ETF, ticker TDOT, now trading on Nasdaq. Eric Balchunas states the initial seed capital is $11 million, with a management fee of 0.3%. Physical crypto ETFs allow investors to bet on price movements without directly holding digital assets.

21Shares explains that Polkadot aims to connect multiple independent blockchains to enable interoperability. Its native token DOT has a market cap of about $1.7 billion. Previously, 21Shares launched physical ETFs tracking Bitcoin, XRP, Solana, Dogecoin, and Sui.

Morgan Stanley Plans to Use Coinbase and BNY Mellon as Bitcoin ETF Custodians

According to CoinDesk, Morgan Stanley has filed Form S-1 with the SEC, revealing plans for the Morgan Stanley Bitcoin Trust to use Coinbase Custody and Bank of New York Mellon (BNY Mellon) as custodians.

The filing states the trust will primarily store Bitcoin offline in cold storage, with private keys disconnected from the internet to reduce hacking risks. BNY Mellon will also serve as fund administrator, transfer agent, and cash custodian, handling accounting, shareholder records, and cash flows related to the ETF.

Over $9 Billion in Funds Flowed Out of Bitcoin and Ethereum ETFs in Four Months

According to CoinDesk, data shows that US-listed spot Bitcoin and Ethereum ETFs experienced record outflows over the past four months, indicating a significant decline in institutional interest.

Bitcoin ETFs have seen four consecutive months of outflows, totaling $6.39 billion, the longest monthly outflow since their launch in January 2024. Ethereum ETFs also saw outflows of $2.76 billion. The large-scale outflows explain the price declines of both tokens. Bitcoin, after surpassing $126,000 in early October last year, has nearly halved to around $67,000. Ethereum has suffered even more, dropping over 60% from its high of over $4,950 in August last year.

Insights and Analysis on Crypto ETFs

Bloomberg Analyst: BlackRock Adjusts Ethereum Staking ETF Fee Rate, May Offer Tiered Discounts

Bloomberg analyst James Seyffart posted on X that BlackRock has updated its Ethereum Staking ETF (ETHB) application, showing the fee rate will be adjusted to 10% of staking rewards, with potential tiered discounts based on size.

The previous document listed the fee as “18% of total staking yield.” The reduction is seen as part of product optimization.

Bloomberg Analyst: 21Shares Polkadot ETF Fee at 0.3%, Initial Seed Capital About $11 Million

Senior ETF analyst Eric Balchunas on X states that the US-listed physical Polkadot ETF by 21Shares has a fee of 0.3%, with initial seed capital around $11 million.

The product description notes that Polkadot aims to connect multiple independent blockchains into an interoperable network, enabling developers to build and run custom blockchains on its platform.

Bloomberg Analyst: About Half of Solana ETF Inflows Come from Institutional Buyers with Over $100 Million Assets

Eric Balchunas reports that since the launch of the spot ETF in July, SOL has dropped 57% (one of the worst issuance timings in ETF history), yet these ETFs have still attracted $1.5 billion in inflows with minimal redemptions.

Approximately 50% of the assets come from institutional investors submitting 13F filings, indicating a serious and professional investor base. Both are positive signals for future growth.

The 13F report is a quarterly filing required by the SEC from institutional investors managing over $100 million.

Bloomberg Analysts: Most Bitcoin ETF Inflows Turn Positive This Year

Senior Bloomberg ETF analyst Eric Balchunas states, “Yesterday, Bitcoin ETFs saw strong inflows again (net inflow of $225.2 million). Nearly all products have turned positive in net inflows this year. But Bitcoin is still down 22% year-to-date, with a total retracement of 50% from its high.”