While spot Bitcoin exchange-traded funds (ETFs) saw more than $1.2 billion worth of outflows over the last couple of days, their recent downturn could be a sign of healthy long-term growth.

Asset managers State Street Global Advisors and Galaxy Asset Management have launched three new cryptocurrency ETFs designed to tap into the burgeoning Web3 market.

PayPal and Venmo have announced integration with the Ethereum Name Service (ENS), allowing users to send and receive crypto using human-readable names instead of complex wallet addresses.

Top stories in the Crypto Roundup today:

• Spot Bitcoin’s ETFs Record Outflow Streak Could be Sign of Maturing Category
• State Street and Galaxy Unveil Three New Cryptocurrency ETFs
• Venmo and PayPal Integrate With Ethereum Name Service (ENS)

Spot Bitcoin’s ETFs Record Outflow Streak Could be Sign of Maturing Category

While spot Bitcoin exchange-traded funds (ETFs) saw more than $1.2 billion worth of outflows over the last couple of days, their recent downturn could be a sign of healthy long-term growth.

Eric Balchunas, senior ETF analyst at Bloomberg, said that the movement of these ETFs is “going to be two steps forward, one step back,” as “that’s the way many ETF categories are born and mature.” The analyst added that nothing “goes up in a straight line” because ETFs “service long term investors and traders.”

Spot Bitcoin ETFs have seen investors move out funds between August 27 and September 6 in their largest-ever daily net outflow streak since launching earlier this year. The $1.2 billion that left these funds represented around 3% of their total assets.

To Balchunas, a worrisome figure would be around the 15% to 20% mark of the $46 billion spot Bitcoin ETFs have under management. The pace of inflows into these funds, however, has been slowing down, as they saw net inflows of $12 billion in their first two months of trading, and just $4 billion over the next six months.

State Street and Galaxy Unveil Three New Cryptocurrency ETFs

Asset managers State Street Global Advisors and Galaxy Asset Management have launched three new cryptocurrency ETFs designed to tap into the burgeoning Web3 market.

The funds, announced on September 10, offer diversified exposure to blockchain technology through a combination of stocks and cryptocurrencies. These include the SPDR Galaxy Digital Asset Ecosystem ETF (DECO), the SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO), and the SPDR Galaxy Transformative Tech Accelerators ETF (TEKX).

The funds aim to offer diversified exposure to blockchain technology, rather than focusing on specific cryptocurrencies. State Street’s HECO and DECO funds also hold shares in Bitcoin miners, exchange operators, and semiconductor manufacturers. TEKX focuses on blockchain and artificial intelligence equities.

The ETFs charge fees ranging from 0.65% to 0.9%, higher than many passive crypto ETFs that charge up to 0.25%, but lower than many actively managed funds that can see fees go to 2% and beyond.

Venmo and PayPal Integrate With Ethereum Name Service (ENS)

PayPal and Venmo have announced integration with the Ethereum Name Service (ENS), allowing users to send and receive crypto using human-readable names instead of complex wallet addresses.

ENS essentially acts as a nickname system for blockchain addresses. Traditionally, sending cryptocurrency involves using long strings of letters and numbers, a process prone to errors that can lead to a loss of funds. With ENS, users can register a name like "yourname.eth" which points to their actual crypto wallet address.

The integration is expected to reach over 270 million Venmo and PayPal users in the United States, and the move aligns with PayPal's growing presence in the blockchain space. Their stablecoin, PayPal USD (PYUSD), recently surpassed $1 billion in market capitalization, and in May, they partnered with several crypto companies including Crypto.com and Paxos to onboard new users.

State of the Crypto by Top Tier Exchange Volume

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