Connect with us
  • tg

Cryptocurrency

BlackRock’s Spot Bitcoin ETF Sees First Day of Outflows in Nearly 4 Months

letizo News

Published

on

The iShares Bitcoin Trust (IBIT), issued by BlackRock, the world’s largest asset management firm, just recorded its first day of outflow in almost four months.

Data from Farside Investors shows that IBIT investors withdrew $13.5 million from the fund on Thursday, August 29. The last time the BlackRock spot Bitcoin exchange-traded fund (ETF) recorded a negative flow was on May 1, and the outflow amounted to $36.9 million. Since then, the fund has either witnessed inflows or zero flows.

IBIT Sees First Daily Outflow Since May

BlackRock’s IBIT has been the leading Bitcoin ETF since May when it surpassed the Grayscale Bitcoin Trust (GBTC) after 96 trading days following its launch. At the time, IBIT became the largest spot Bitcoin ETF, with assets under management (AUM) hovering above $19.7 billion and 288,671 bitcoin (BTC) in its holdings.

Currently, IBIT holds 357,740 BTC, and its AUM is $17.24 billion, primarily because BTC is worth 13% less than it was at the time.

By the end of May, BTC was worth around $68,000; however, according to CoinMarketCap data at the time of writing, the leading cryptocurrency was changing hands at $59,200, down slightly in the past 24 hours.

ETFs on 3-Day Outflow Streak

The outflow from IBIT and plunge in bitcoin’s value comes as the United States spot Bitcoin ETF market witnesses a three-day outflow streak. The investment products recorded $127.1 million in outflows on August 27, $105.3 million in negative flows on August 28, and investors withdrew another $71.8 million on August 29.

The outflows have been so heavy that only Ark Invest’s ARKB has seen inflows in the past three days, and that was on August 29, a figure totaling $5.3 million. Other funds, including Fidelity’s FBTC, Bitwise’s BITB, and Invesco Galaxy’s BTCO, have either recorded outflows or no action.

Grayscale’s GBTC continued its outflow streak, with investors withdrawing $22.7 million. The fund has seen negative flows totaling $49 million in the past three days.

Despite the negative flows over the past few days, the total net assets of the U.S. spot Bitcoin ETF market account for 4.62% of bitcoin’s market cap, per data from SosoValue. The funds have seen a cumulative net inflow of $17.78 billion since launch and have a total AuM of $50 billion.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!

Cryptocurrency

Mounting Evidence of Ethereum’s Struggles: Volatility, ETF Losses, Weak Demand

letizo News

Published

on

Ether’s price has been struggling to break above the $2,750 resistance level, despite rising by over 44% this month.

Now, several evidence point to the altcoin’s struggles throughout the 2023-25 cycle, which revealed both volatility and capital flow patterns that contrast sharply with prior cycles and competitor assets like Bitcoin and Solana.

Ethereum Faces Significant Headwinds

One of the most notable indicators is Ether’s realized volatility, which has compressed across cycles as the asset’s size grows, currently hovering around 80%, down from over 120% in earlier periods, according to Glassnode’s latest report.

Typically, Ether’s 3-month realized volatility rises during bull markets and falls during bearish trends. However, this cycle has defied that pattern. In fact, after reaching 60% at the mid-2024 peak of roughly $4,000, realized volatility surprisingly climbed above 90% even as the price declined toward $1,500. This atypical increase in volatility amid falling prices signals increased market uncertainty and instability.

Moreover, while the drawdown structure in this cycle generally aligns with the typical Ether bull market pattern – where corrections of 40% or more from local peaks are common – the key deviation lies in the absence of a fresh ATH price for the altcoin, unlike Bitcoin and Solana, both of which set new peaks in this cycle. This lack of a new high has been a disappointment for many investors who expected the world’s second-largest crypto asset to track more closely with its peers.

Additionally, Ether’s downside price movements have been unusually volatile, with multiple drawdowns exceeding 40% and the current 2025 drawdown peaking at an unusually severe 65.4%. While previous cycles have seen similar or worse drawdowns, they tended to occur later in the cycle. As such, this early, steep correction suggests structural weaknesses unique to this period.

In terms of capital inflows, the Realized Cap – a measure of the value of all Ether based on the price at which coins last moved – has increased by only 38% since the cycle low in January 2023, growing from $176 billion to $243 billion.

This pales in comparison to the massive growth during the 2021 cycle, which saw more than a 1,000% increase. The relatively muted capital inflow of approximately $67 billion during this cycle underlines weaker liquidity support and helps explain the crypto asset’s subdued price performance.

Supporting this narrative, trade activity on major centralized exchanges has mirrored these trends: spot volume, which peaked at $14.7 billion per day during the $4,000 price high in December 2024, plunged by roughly 80% to $2.9 billion per day. Though recent trading volumes have rebounded to $8.6 billion daily, spot volumes have yet to establish new cycle highs, as seen with previous cycles.

Average ETH ETF investor Substantially Underwater

The firm’s analysis further revealed that the average investor in the BlackRock and Fidelity Ethereum ETFs is currently facing an unrealized loss of approximately 21%. Net outflows from these ETFs have tended to accelerate whenever Ethereum’s spot price drops below the average cost basis, observed during important declines in August 2024 and again in January and March 2025.

Despite initial excitement, the ETFs accounted for only around 1.5% of spot market trade volume at launch, pointing to a lukewarm reception. While this rose to over 2.5% in November 2024, it has since reverted back to 1.5%.

While the current market conditions reveal mounting pressure for the crypto asset, certain market experts also predict that it could hit the $3,000 mark as early as June.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Continue Reading

Cryptocurrency

Crypto Markets Shed $200B in 48 Hours as Bitcoin Dumps to 12-Day Low (Weekend Watch)

letizo News

Published

on

Perhaps driven by the latest escalation of tensions between the US and China, bitcoin’s price has tumbled over the past 12 hours to a multi-week low of $103,000.

The altcoins have it even worse, with massive price drops from the likes of SUI, LINK, DOGE, SOL, ADA, and more. CRO has defied the market-wide trend with a double-digit price surge.

BTC Dumps to $103K

Ever since it skyrocketed to almost $112,000 last Thursday to chart a new all-time high, bitcoin’s price has been unable to recapture or even sustain its momentum. It started to fall on the next day when US President Trump recommended a new set of tariffs against the EU.

Although he delayed their implementation for over a month, BTC failed to bounce off decisively and was stopped at around $110,000 on a couple of occasions. The latest rejection, which came on Thursday at $109,000, was the worst one (for now) as it drove BTC down to $105,000.

It recovered some ground to $106,000 yesterday, but the bears reemerged and pushed the cryptocurrency south to a 12-day low of just over $103,000. This decline transpired after Trump said China “violated” the trade agreement between the two, while Beijing responded kindly.

Although BTC has regained some ground and now sits above $103,500, its market cap has slid to $2.06 trillion on CG, while its dominance over the alts has shot up to 61.3%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Alts Bleed Out, Not CRO

The alternative coins have marked some big losses over the past day. Ethereum is close to breaking below $2,500 after a 4.5% drop. XRP has plunged beneath $2.15, while DOGE, SOL, ADA, SUI, LINK, and AVAX have plummeted by up to 9%.

The situation with the lower-cap alts is even more painful, as many, such as ENA, INJ, VIRTUAL, and PEPE, have charted double-digit price declines.

CRO is the only exception, having gained 17% in the past day and trading close to $0.11.

The total crypto market cap has seen roughly $200 billion gone in the past two days and is down to $3.360 trillion.

Cryptocurrency Market Overview. Source: QuantifyCrypto
Cryptocurrency Market Overview. Source: QuantifyCrypto
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

Continue Reading

Cryptocurrency

NFT Lending Tanks 97%: Can The Sector Find a New Life?

letizo News

Published

on

Following a brief wave of optimism in early 2024, the NFT lending market has drastically slowed. As of May 21, 2025, loan volumes have dwindled to just over $50 million – a steep 83% drop since January and a staggering 97% from the January 2024 high. At its peak, activity surged with platforms like Blur’s Blend and NFTfi attracting traders eager to access liquidity without selling their NFTs.

Today, however, interest has faded, which signals that the hype around NFT lending has lost its appeal amid current market realities.

NFT Lending In Crisis

The downturn in NFT lending is closely linked to the broader slump in the NFT market. Many top-tier collections have seen their floor prices plunge over 50% from peak levels, eroding the value of collateral and, in turn, lending activity. While a handful of projects have bucked the trend, they remain rare exceptions unable to revive the sector.

Loan durations averaged 31 days in May, maintaining a consistent trend seen throughout 2024 and into 2025. This figure is notably shorter than the 40-day average observed in 2023, which, according to DappRadar’s report, hints at a shift in borrower behavior toward shorter, more strategic use of liquidity, rather than longer-term commitments.

The average NFT loan in May 2025 was just $4,000, a steep decline from $14,000 in May 2024 and $22,000 in early 2022, which represents a 71% yearly drop. It suggests borrowers are either using less valuable NFTs or avoiding heavy leverage. The user base has collapsed too: active borrowers and lenders have fallen nearly 90% and 78%, respectively, since their January 2024 peak.

Reigniting The Sector

For NFT lending to regain momentum, new drivers are essential. DappRadar stated that integrating real-world asset (RWA) NFTs – like real estate or yield-generating tokens – could provide stronger, more reliable collateral.

Simplified, intent-based interfaces that match loan terms to user needs may reduce complexity and attract more users.

Additionally, evolving beyond traditional peer-to-peer lending toward smarter infrastructure, including undercollateralized options, credit profiling, and AI-based risk tools, could elevate the ecosystem and make NFT lending a more viable and scalable financial service.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Continue Reading

Trending

©2021-2024 Letizo All Rights Reserved