- Investors pulled millions from Bitcoin and Ethereum ETFs as they reshuffle portfolios, reacting to market swings and economic worries.
- Grayscale is working to turn its Digital Large Cap Fund into a multi-asset ETF, making it easier for more investors to access crypto.
- VanEck’s push for a Binance Coin ETF shows growing interest in BNB, hinting at a bigger role for altcoins in the U.S. ETF market.
As per Wu Blockchain, Bitcoin spot ETFs experienced a net outflow of $158 million on April 1. Similarly, Ethereum spot ETFs saw a total outflow of $3.58 million. Market volatility and macroeconomic concerns may have contributed to this sell-off. Analysts suggest that investors are adjusting their portfolios ahead of potential economic changes. This downturn comes as asset managers explore new ETF opportunities.
Grayscale Pursues Multi-Asset ETF
One of the top digital asset managers, Grayscale, has started the process of introducing a crypto ETF that includes multiple assets. To transition its Digital Large Cap Fund into a publicly traded investment fund, the company submitted an S-3 form to the United States Securities and Exchange Commission. The GDLC fund holds Bitcoin, Ethereum, Ripple, Solana, and Cardano.
Besides, NYSE Arca submitted a 19b-4 filing in October, seeking approval to list and trade GDLC. ETF Store President Nate Geraci highlighted that this request proposes a rule change to accommodate multi-asset index funds. Bloomberg analyst James Seyffart remains optimistic. He believes this aligns with the SEC’s review timeline, which could lead to approval before the year ends. If greenlit, the conversion would boost accessibility for both retail and institutional investors.
VanEck Seeks BNB ETF Approval
VanEck is making moves in ETF as well. The firm has filed to establish a trust entity for a Binance Coin (BNB) ETF in Delaware. This filing marks a preliminary step before submitting a formal SEC application. If approved, it would be the first U.S.-based ETF focused on BNB.
VanEck, managing nearly $115 billion in assets, registered the VanEck BNB ETF on March 31. Currently, only non-U.S. BNB-related products exist, such as 21Shares Binance BNB ETP. The potential launch of a BNB ETF in the U.S. would signal growing institutional interest in Binance Coin.
Macroeconomic Factors Drive ETF Sell-Offs
Market participants are adjusting positions amid economic uncertainty. Some analysts attribute the Bitcoin ETF outflows to concerns over President Trump’s upcoming tariffs. These trade measures, set to take effect on April 2, could impact investor sentiment. Consequently, macroeconomic pressures are testing the resilience of Bitcoin ETFs, while Ethereum ETFs strive to recover.
