Weekly Update: 11th of September
What happened between the 4th and 11th of September?
- Bitcoin ETFs experienced over $1.2 billion in outflows in 8 days. Read more
- Australian-based asset manager Monochrome files for the first Australian ETF to hold Ether directly. Read more
- Ethereum Foundation plans to publish a financial report to address community concerns about its spending. Read more
- Three leading banks in Japan started a cross-border stablecoin trial. Read more
US Bitcoin ETFs post longest streak of outflows
Between August 30th and September 6th, investors withdrew around $1.2 billion from 11 listed Bitcoin spot ETFs, marking the longest withdrawal streak since their launch, according to Bloomberg. During this period, Bitcoin dropped by 17%, dragging the altcoin market down as well. However, this trend reversed on September 9th with an inflow of $28 million into the ETFs. Despite this setback, Bitcoin ETFs remain dominant, with the top four ETF launches of 2024 being Bitcoin spot ETFs. Of the top 25 ETF launches by inflows, 13 are crypto-related, including 10 Bitcoin ETFs and 3 Ethereum funds. So, despite this short-term dip, we expect the ETFs to continue their momentum and attract more capital, which in turn will positively impact Bitcoin and the market.
Australia witnesses the first Ether spot ETF filing
On September 5th, Monochrome Asset Management announced its application to list the Monochrome Ether exchange-traded fund (IETH) on CBOE Australia. CEO Jeff Yew expects strong interest in the Ether ETF, particularly due to the in-kind subscription model, which allows investors to invest and redeem using digital assets—similar to its recently launched Bitcoin ETF. Over the past months, the firm noticed that increasingly more investors are moving their assets from exchanges to the ETF for greater security at relatively low costs. While Australia's digital asset ETF market is smaller than the US, these developments highlight the growing presence of digital assets in traditional markets.
Ethereum Foundation plans to publish a financial report
During an ask-me-anything session, an Ethereum researcher revealed that the Ethereum Foundation is preparing a financial report in response to community concerns. Recent large Ether transfers by the foundation raised questions about transparency. The researcher shared that the foundation spends around $100 million annually, holds $650 million in its main wallet, and has a roughly 10-year runway, depending on Ether's price. Even after the announcement of a financial report, some community members were critical with some stating that a quarterly report with financials and updates shouldn’t be an issue, especially for the sake of transparency.
Japanese banks start stablecoin trail
On September 5th, it was announced that Japanese banks MUFG, SMBC, and Mizuho will trial a stablecoin-based platform for cross-border transactions, led by blockchain firms Progmat, Datachain, and Toki. The platform aims to streamline international settlements by integrating stablecoins with current messaging frameworks. The project will stablecoins issued through Progmat’s platform which can issue stablecoins denominated in major fiat currencies like the Japanese yen, U.S. dollar, and Euro. The trial will begin with a prototype phase, targeting commercialization by 2025.
In other digital assets news
- The number of smart contracts on Layer 2 network Stacks reaches an all-time high as it moves towards its important network upgrade.
- A New York court has granted digital assets exchange Coinbase access to SEC documents reflecting the SEC’s Howey analysis, securing a small win against the agency.
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