A single fund pushed the bitcoin exchange-traded fund (ETF) market across the finish line.
On Tuesday, redemptions affected five products, but a strong inflow into Blackrock's IBIT offset the pressure and returned the category to positive territory after an outflow of $144.67 million on Monday.
Ethereum ETFs remained in the red, although the pace of outflows slowed sharply.
IBIT Compensated for Outflows Across All Bitcoin Funds
Blackrock's IBIT attracted $50.20 million, which was enough to offset outflows from other funds and provide bitcoin ETFs with a net daily inflow of $4.89 million.
Franklin Templeton's EZBC recorded the largest outflow at $16.46 million. The ARKB fund from ARK 21Shares lost $11.55 million, while VanEck's HODL fund lost $10.30 million. Fidelity's FBTC fund recorded an outflow of $4.13 million, and Hashdex's DEFI fund lost another $2.87 million.
Trading volume for bitcoin ETFs reached $1.42 billion. The total net asset value at close was $77.46 billion.
Ethereum ETFs recorded much smaller losses. Fidelity's FETH lost $2.33 million, while Blackrock's ETHA attracted about $564,000. The net outflow for this category was $1.76 million.
The total trading volume for Ethereum ETFs was $334.45 million, with net assets at the end of the session at $10.48 billion.
Solana Rises as Hashdex Prepares to Close DEFI
Solana was the only altcoin category among ETFs that recorded an inflow. Morgan Stanley's MSOL fund attracted $1.43 million, allowing the category to end the session in positive territory. The total trading volume for Solana ETFs reached $36.07 million, with net assets at the end of the session at $899.08 million.
XRP and HYPE ETFs recorded no net inflows or redemptions during the session.
The outflow from Hashdex's DEFI fund came just over a week after the issuer announced on August 3rd the closure and liquidation of the fund. This timing suggests that the $2.87 million redemption that occurred on Tuesday is related to capital withdrawal ahead of the scheduled closure.
As of July 30, the fund's assets were approximately $14.7 million. Trading and new subscriptions are scheduled to cease on August 17, after which DEFI will be delisted from NYSE Arca. Investors remaining in the fund are expected to receive cash from the liquidation around August 28.
Among the factors influencing the decision, Hashdex cited the fund's size, its liquidity, operating expenses, investor demand, and a broader product development strategy.
The redemption on Tuesday indicates that some investors prefer to exit the fund before the liquidation process concludes. This episode also highlights the pressure faced by smaller bitcoin ETFs in a market where assets and trading activity remain heavily concentrated in the largest products.
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