Bitcoin and Ether ETFs Holdings Drop to Multi-Month Lows

Bitcoin and Ether ETFs Holdings Drop to Multi-Month Lows

Bitcoin and Ethereum ETFs holdings have hit multi-month lows following the sharp drop in crypto prices last week. Spot Bitcoin ETFs saw $170 million in outflows on Friday, bringing their cumulative value to $48.24 billion, the lowest since May 1. Ethereum ETFs also experienced declines, with total asset value dropping to a record low of $6.09 billion after $6 million in outflows.

Grayscale’s funds saw the largest withdrawals, with Ethereum-based ETHE losing $10 million in a single day. BlackRock on the other hand didn't record any inflows, nor outflows on the last trading day last week. The continued outflows reflect broader bearish sentiment in the market, with only a few tokens showing gains amid the downturn.

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FRIEND Crashes After Team Abandons Smart Contracts Control

Friend.tech, a Web3 SocialFi project that allows users to buy tokenized shares (keys), has seen its FRIEND token crash after its team permanently abandoned control over its smart contracts on September 8. By transferring ownership to Ethereum's null (burn) address, the team ensured that no further changes to fees or functionality could be made. As a result, the FRIEND token dropped 22.5%.

This follows months of declining user engagement and friction between the team and its community, particularly after a failed FRIEND token airdrop and the abandonment of plans to build its own blockchain, Friendchain. Once a high-flying project with a market cap of $233.6 million and a TVL of $52 million in October 2023, the platform now has a market cap of just $6 million and a TVL under $3.5 million.

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Ethereum Foundation to Release Financial Report

The Ethereum Foundation is set to release a financial report addressing community concerns over spending transparency, as confirmed by Ethereum researcher Justin Drake. In a recent AMA, Drake revealed that the foundation spends around $100 million annually and holds $650 million in its main Ethereum wallet. Depending on ETH's price, the foundation's runway has a 10-year expectancy.

Community members have expressed frustration after unexplained large ETH transfers, including a $94 million move to Kraken. Ethereum co-founder Vitalik Buterin explained that the foundation's strategy is to spend 15% of its funds each year, aiming for long-term sustainability. The upcoming report is expected to shed light on these transactions and the foundation's financial management.

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VanEck To Discontinue Ethereum Futures ETF

VanEck has announced the closure of its Ethereum Futures ETF (EFUT) due to investor preference shifting toward its newly approved spot Ethereum ETF, ETHV. The Ethereum Strategy ETF, which focuses on Ether futures, currently holds $21.24 million in assets but will be liquidated on September 23, with shareholders having until September 16 to sell their shares.

EFUT, listed on the CBOE since October 2023, has seen declining investor interest following the launch of ETHV, which directly tracks Ether's price. VanEck attributed the closure to various factors, including liquidity and performance. The shift reflects broader investor demand for spot ETFs, which offer more direct exposure to cryptocurrency assets.

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Data of the Day

Following the downfall of the Friend.tech SocialFi project, Farcaster's daily peak of roughly 15,000 in early February has been replaced by a phase of low growth, with about 650 new users as of right now. Farcaster's DAU has decreased by roughly 40%, from a peak of 100k in early July to 60k now. Dune's dashboard shows that the quantity of posts and interactions has decreased by 60% since the peak.

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More Breaking News

• Russia is developing crypto infrastructure to bypass Western sanctions for international trade, spearheaded by the Central Bank and backed by new legislation.
• Japan’s three major banks are collaborating on "Project Pax" to test a blockchain stablecoin platform for cross-border transfers, with a goal of launching by 2025.
• Ripple co-founder Chris Larsen has signed a letter endorsing Kamala Harris for president, joining other corporate and tech leaders.
• Stacks, a Bitcoin smart contract layer, reached a record high of over 1,400 monthly smart contract deployments ahead of the Nakamoto release.
• Tether has invested $100 million in Latin American agricultural giant Adecoagro, marking its first venture into the food sector amid growing stablecoin competition.
• A New York judge has partially granted Coinbase's request for the US SEC to provide certain documents in their ongoing lawsuit.

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