The cryptocurrency market is experiencing a period of volatility, with Bitcoin and Ethereum trading lower on Wednesday morning. Despite the overall downward pressure, Bitcoin spot ETFs saw significant inflows on Tuesday, while Ethereum ETFs experienced net outflows.
According to data from SoSo Value, Bitcoin spot ETFs recorded a total net inflow of $88.06 million on August 20. BlackRock’s IBIT led the pack with a $55.43 million inflow, closely followed by Ark Invest and 21Shares’ ARKB with a $51.91 million inflow. However, Grayscale’s GBTC saw an outflow of $12.81 million.
Conversely, Ethereum spot ETFs saw a total net outflow of $6.49 million on the same day. 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.
While Bitcoin ETFs are attracting investment, the cryptocurrency market is facing a broader 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 and Solana are also in the red, down 1.8% and 2.6%, respectively.
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 August 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 November 19.
