Ethereum

Weekly ETF Recap: Bitcoin Sees Longest Negative Streak, Ethereum Demand Missing

The negative streak in terms of flows for the spot Bitcoin ETFs continued in the past week and has now become the longest since those products were greenlighted in mid-January.

At the same time, the Ethereum counterparts still see little activity, with investors’ demand and interest obviously missing.

Bitcoin ETFs’ Negative Streak

CryptoPotato reported last weekend the substantial outflows of $277.2 million registered in the prior five-day trading period. The landscape only worsened in the past week, even though September 2 was a national holiday in the States.

For the four-day trading week, investors pulled out $287.8 million on Tuesday, $37.2 million on Wednesday, $211.1 million on Thursday, and $170 million on Friday. Fidelity’s FBTC was the biggest loser, leading the adverse trend in three out of the four days.

Overall, $706.1 million left the US spot Bitcoin ETFs within this timeframe. Moreover, this extended the negative streak to eight consecutive days in the red, which has now become the longest.

Aside from the previous Monday (August 26), when investors allocated $202.6 million in the ETFs, all subsequent trading days have been in the red. This means that the overall outflows within the past two weeks alone have been close to $900 million.

Consequently, the total AUM has fallen below $50 billion for the first time since May 1. As such, it’s safe to assume that the ETF outflows are among the most probable reasons behind BTC’s price decline of 7% in the past week.

U.S BASED SPOT #BITCOIN ETF AT LOWEST LEVEL SINCE MAY 1.

After a bearish week for the prices of many crypto tokens—only three of the top 50 tokens by market cap gained on the week, the value of U.S.-based spot bitcoin and spot Ethereum exchange-traded funds have hit new… pic.twitter.com/0in9Ogy1XJ

— Karan Singh Arora (@thisisksa) September 8, 2024

ETH ETFs Lack Demand

While the spot Bitcoin ETF flows are quite volatile, the same cannot be said about the Ethereum counterparts. The second-largest cryptocurrency is yet to capture investors’ interest and demand.

Tuesday was the worst day in terms of outflows, with $47.4 million leaving the ETH funds. $37.5 million was pulled out on Wednesday, while Thursday and Friday saw minimal activity, with $0.2 and $6 million in outflows.

Recall that there was zero reported activity last Friday, while the outflows have dominated in 11 out of the last 13 trading days.

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Ethereum

Ethereum Layer 2 Arbitrum One Surpasses 1 Billion Transactions

Arbitrum One, the Ethereum Layer 2 optimistic rollup, has surpassed 1 billion transactions this week. This feat was accomplished by Arbitrum One within three years of its mainnet launch in August 2021.

As of October 1st, Arbiscan recorded a total of 1.003 billion transactions.

In comparison, Coinbase’s Layer 2 network, Base, has logged 755 million transactions so far, while OP Mainnet trails with 347 million.

Notably, Arbitrum One also leads in total value locked (TVL) among Layer 2 solutions, currently sitting at $14.3 billion, with Base at $7.32 billion and OP Mainnet at $6.57 billion, according to the data compiled by L2Beat.

Earlier last month, stablecoin issuer Paxos announced its plans to launch its products on Arbitrum One. The main objective behind the partnership is to further institutional integration onto the Arbitrum network and bring real-world assets on-chain.

Via Arbitrum, the company intends will tap into Ethereum’s deep liquidity at higher speeds and low cost and engage Arbitrum’s active DeFi ecosystem.

While weighing on choosing Arbitrum One as the first Layer 2 chain to integrate with Paxos, Walter Hessert, the company’s Head of Strategy, commented,

“We are excited to partner with Arbitrum to bring more real-world assets on-chain. Arbitrum is known for its speed, security and scalability, which is critical to driving long-term adoption of digital assets across industries. In the next three years, the adoption of stablecoins by both retail and institutional users will explode and Paxos will drive that paradigm shift.”

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Ethereum

Sui Bridge Launches on Mainnet, Connecting Ethereum and Sui

The Sui Foundation has introduced the Sui Bridge on mainnet, enabling secure asset transfers between the Ethereum and Sui networks. This bridge focuses on simplifying the movement of assets across chains, starting with ether (ETH) and wrapped ether (WETH). Sui Rolls Out Bridge for Asset Transfers Between Ethereum and Sui According to the foundation’s blog [……
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Ethereum

Coinbase Sees Strong Q4 for Bitcoin, Fueled by US Rate Cuts, China Stimulus

Coinbase Institutional’s report highlights optimism for the crypto market, driven by expectations of U.S. rate cuts and China’s monetary stimulus, which could boost bitcoin’s performance in Q4 2024. While bitcoin remains strong, ethereum faces challenges with rising transaction fees and limited impact from U.S. spot exchange-traded funds (ETFs…
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