Bitcoin, Ethereum Down 2% Despite ETF Flows, But One Cryptocurrency Is Up 12%

Spot Bitcoin ETFs saw significant inflows while Ethereum ETFs experienced net outflows on Tuesday, as the broader crypto market faces downward pressure, with Bitcoin BTC/USD and Ethereum ETH/USD both trading lower on Wednesday morning.

What Happened: Spot Bitcoin ETFs on Aug. 20 recorded a total net inflow of $88.06 million.

BlackRock‘s IBIT led the pack with a $55.43 million inflow, followed closely by Ark Invest and 21Shares‘ ARKB with a $51.91 million inflow, according to data from SoSo Value.

Grayscale‘s GBTC, however, saw an outflow of $12.81 million.

Conversely, Ethereum spot ETFs saw a total net outflow of $6.49 million on the same day, data shows.

Grayscale‘s ETHE experienced the largest outflow at $36.99 million, while BlackRock‘s ETHA and Bitwise‘s ETHW saw inflows of $26.77 million and $3.73 million, respectively.

Despite the positive ETF inflows for Bitcoin, the cryptocurrency market is experiencing a downturn.

As of Wednesday morning, Bitcoin is trading at $59,450, down 1.9%, while Ethereum has fallen 2.4% to $2,590.

Other major altcoins like BNB Coin BNB/USD and Solana SOL/USD are also in the red, down 1.8% and 2.6%, respectively.

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Why It Matters: Amidst the market weakness, Tron TRX/USD stands out with 12.5% gains.

This surge comes amid developments in the Tron ecosystem, particularly its foray into the meme coin space.

Tron founder Justin Sun recently launched SunPump, a platform facilitating easy creation of meme coins on the Tron network.

Since its inception, over 5,596 meme coins have been created, generating more than 2 million TRX (approximately $257,779) in revenue for the network.

On Aug. 17 alone, meme coin creation on Tron reached a single-day high, with 1 million TRX ($133,000) spent.

Sun has emphasized Tron’s competitive advantage, stating, “Tron’s biggest strength is its $60 billion in TRON USDT. No other blockchain protocol has a liquidity pool this large. Meme coins thrive on liquidity, and Tron has it in abundance.”

Meanwhile, the Brazilian Securities and Exchange Commission (CVM) has approved the second Solana ETF in the country, launched by Hashdex in partnership with BTG Pactual.

This follows the approval of Brazil’s first Solana ETF on August 8.

However, the outlook for a Solana ETF in the United States remains uncertain.

Bloomberg ETF analyst Eric Balchunas said that the Solana ETF application has stalled in the filing process, with approval chances in 2024 considered nil.

Balchunas suggested that a change in U.S. government leadership might be necessary for any progress on this front.

This development comes as investors and enthusiasts alike are eagerly anticipating Benzinga’s Future of Digital Assets event on Nov. 19.

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