Ether ETFs Switch to Inflows

Julie Bang / Investopedia

Important points

Bitcoin and ether were trading sideways on Wednesday.

Spot ether exchange-traded funds (ETFs) returned to net daily inflows after four straight days of higher outflows. Bitcoin ETFs experienced a rare day of outflows on Tuesday.

XRP initially rose nearly 3% on Tuesday following news that the Securities and Exchange Commission (SEC) will not make a decision regarding third-party digital assets named in its lawsuit against Binance.

Mt. Gox’s estate late Tuesday moved $3.1 billion worth of Bitcoin to a new digital address belonging to a custodian believed to be helping return the failed exchange’s assets to creditors.

Bitcoin (BTCUSD) and ether (ETHUSD) traded sideways on Wednesday, with bitcoin holding steady around $66,000 while ether traded just below $3,300.

Ether ETFs Turn Positive, Bitcoin ETFs Ride

Spot ether exchange-traded funds (ETFs) recorded their second day of positive inflows, with $33.7 million, exactly one week after they began trading on U.S. exchanges.

BlackRock’s iShares Ethereum Trust (ETHA) had the third-strongest day for new spot ether ETFs ever, with $118 million in inflows, according to Farside Investors. But cumulative net outflows for spot ether ETFs reached $406.4 million by the end of Tuesday, largely driven by $1.84 billion in outflows from Grayscale Ethereum Trust (ETHE) to date.

Tuesday also saw a rare net outflow day for spot bitcoin ETFs, with $18.3 million exiting the market, according to Farside Investors. As expected, the Grayscale Mini Bitcoin Trust began trading on Wednesday morning. The launch involved a 10% distribution of the existing fund’s bitcoin holdings to launch the new ETF, leading to a larger drop in the value of GBTC shares than the new investment firm’s Mini Bitcoin Trust began trading the day before.

XRP Rises Amid Optimism Around SEC Lawsuit

XRP (XRP) made a big move among major digital assets, initially rising nearly 3% after the SEC filed a lawsuit against cryptocurrency exchange Binance on Tuesday, stating that the regulator may not rule on whether third-party tokens such as Solana (SOL) and Polygon (MATIC) are unregistered securities.

While some investors see this as a sign that the SEC is backing down on lawsuits against digital assets that could be considered unregistered securities, others say caution is warranted.

“There’s no reason to think the SEC has ruled that SOL is not a security. Their reluctance to do discovery on a dozen tokens in the Binance case appears to be a litigation tactic, not a change of policy,” Variant Fund Chief Legal Officer Jake Chervinsky said on X, adding that the SEC still considers those tokens to be securities in other cases.

The story continues

Mt. Gox Distributions Continue

Separately, failed bitcoin exchange Mt. Gox transferred another $3.1 billion worth of bitcoin on Tuesday night to a new bitcoin address that crypto analysis firm Arkham Intelligence believes belongs to BitGo, the custodian firm that helped the Mt. Gox trustees return bitcoins to creditors.

Mt. Gox’s estate has been distributing money to former clients for the past few months.

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