The nine recently launched spot Ether exchange-traded funds (ETFs) saw $133.16 million in net outflows in their second day of trading, after registering $106 million in net inflows on their debut.

The asset management arm of the Nasdaq-listed cryptocurrency exchange, Coinbase, is developing a tokenized money-market fund, positioning the exchange in a rapidly expanding crypto-powered sector.

The Australian arm of international banking giant HSBC has announced that it has started blocking customer payments to cryptocurrency exchanges, making it the latest major bank to shun the crypto industry.

Top stories in the Crypto Roundup today:

• Spot Ether ETFs Experience Outflows on Second Trading Day
• Coinbase’s Asset Management Eyes Tokenized Money Market Fund
• HSBC Australia Starts Blockchain Payments to Crypto Exchanges

Spot Ether ETFs Experience Outflows on Second Trading Day

The nine recently launched spot Ether exchange-traded funds (ETFs) saw $133.16 million in net outflows in their second day of trading, after registering $106 million in net inflows on their debut.

The Grayscale Ethereum Trust, the only spot Ether ETF to see outflows on both trading days, shed a substantial $326.86 million. In contrast, Fidelity’s FETH emerged as the top inflow recipient, drawing in $74.46 million, with other funds seeing inflows including the Grayscale Ethereum Mini Trust, Bitwise ETHW, and VanEck ETHV.

BlackRock’s ETHA, which was a standout performer on Tuesday with $266.55 million in inflows, saw a more modest $17.44 million on Wednesday.

Trading volume for these funds also declined from Tuesday’s peak above $1 billion, with approximately $951 million changing hands on Wednesday.

Meanwhile, the spot Bitcoin ETF market continued to attract investor interest, with a collective $44.51 million in inflows on Wednesday led by BlackRock’s IBIT with $65.99 million, while Grayscale’s GBTC was the sole outlier experiencing outflows of $26.22 million.

Coinbase’s Asset Management Eyes Tokenized Money Market Fund

The asset management arm of the Nasdaq-listed cryptocurrency exchange, Coinbase, is developing a tokenized money-market fund, positioning the exchange in a rapidly expanding crypto-powered sector.

Tokenization, the process of representing real-world assets as digital tokens on a blockchain, has captured the attention of both traditional and crypto-native firms. BlackRock, the world’s largest asset manager, has already made significant strides in this arena with its tokenized Treasury fund BUIDL, which has amassed $500 million in assets shortly after launch.

For investors, tokenized funds offer potential advantages such as enhanced transparency and liquidity. Issuers, meanwhile, can benefit from streamlined operations.

Coinbase Asset Management has been steadily building its presence in the tokenization space. Last December, it secured in-principle approval from Abu Dhabi regulators to tokenize traditional assets on its Base network.

Coinbase’s asset management arm, which was created in 2023 after the exchange acquired One River Digital Asset Management, has reportedly also partnered with Apex Group, a global financial services provider, to support its tokenized fund initiative.

HSBC Australia Starts Blockchain Payments to Crypto Exchanges

The Australian arm of international banking giant HSBC has announced that it has started blocking customer payments to cryptocurrency exchanges, making it the latest major bank to shun the crypto industry.

In an email sent to customers, HSBC Australia explained the move saying it will block payments from bank accounts and credit cards for users’ protection citing data from Australia’s competition and consumer regulator that shows Australians lost up to $171 million in investment scams last year.

Shortly after HSBC Australia’s move, Bendigo Bank followed suit citing a need to protect customers from investment scams. Despite the crackdown, HSBC said it would keep accepting customer payments coming from cryptocurrency exchanges.

The bank operates 45 branches across Australia and has over 1.5 million customers.

State of the Crypto by Top Tier Exchange Volume

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