Five things to know about crypto this week: SEC legal challenges and crypto ETFs

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US BTC-Spot ETF Market Sees Second Week of Total Net Outflows

United States BTC spot ETF recorded total net outflows of $105.9 million (excluding Friday flow data for iShares Bitcoin Trust), marking the second consecutive week of outflows. Uncertainty over the Fed’s interest rate path has affected buyer demand for US BTC spot ETFs.

Importantly, the US BTC spot ETF market was facing the possibility of six consecutive days of total net outflows.

According to Farside Investors,

• Grayscale Bitcoin Trust (GBTC) recorded total net outflows of $152.6 million in the week ending June 21. The previous week, GBTC saw total net outflows of $274.3 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) reported total weekly net outflows of $271.0 million, following outflows of $146.3 million the previous week.
• ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) recorded total weekly net outflows of $78.8 million and $35.6 million, respectively.
• However, iShares Bitcoin Trust (I BITE) could buck the trend for the second week, with total weekly net inflows of $1.5 million (excluding Friday flow data). In the week ending June 14, IBIT recorded total net inflows of $41.6 million.

While the US BTC spot ETF market saw more outflows, the US ETH spot ETF market made crypto headlines.

ETH-Spot ETF Issuers File S-1 Amendments and Await Final SEC Approval

In a whirlwind of activity, the rest of the United States ETHCash ETF issuers filed their S-1 amendments on Friday, June 21.

ETF Shop President Nate Geraci shared the news on X (formerly Twitter), assignment,

“All spot eth ETF S-1 amendments are IN…Bitwise, Fidelity, 21Shares, Grayscale, Franklin, VanEck, iShares and Invesco. The known fees so far are Franklin (0.19%) and VanEck (0.20%). Now we wait for the SEC.

ETH avoided a pullback on Friday, with news of the S-1 amendment filing providing support. Nonetheless, uncertainty remains over the likely demand for US ETH spot ETFs.

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, stuck to his previous projection, saying,

“Thanks for all the reminders that I once called eth spot ETFs “small potatoes.” In hindsight, it was too dismissive, I take it back. That said, I still think Eth will be lucky to get 20% of the BTC etfs aum. We’ll see anyway. »

Given the expected demand, relative to BTC ETFs, surprisingly high demand for US ETH spot ETFs could fuel ETH’s next bull run.

ETH fell 2.73% to $3,534 Monday through Friday, well below the November 2023 ETH spot ETF market high of $4,870.

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