ENCRYPT ETF, HOW'S THE BELLAS
Photo by Prathik Desai
Original language: Luffy, Foresight News
IN THE FIRST TWO WEEKS OF OCTOBER 2025, THE BITCOIN SPOT ETF ATTRACTED $3.2 BILLION AND $2.7 BILLION IN INFLOWS, RESPECTIVELY, RESULTING IN THE HIGHEST AND FIFTH RECORD OF SINGLE-WEEK NET INFLOWS IN 2025。
UNTIL THEN, BITCOIN ETF WAS EXPECTED TO ACHIEVE THE "UNCONTINUING FINANCIAL FLOW WEEK" IN LATE 2025。
However, the most serious event in the history of encrypted currency liquidations has taken place over time. This evaporation of $19 billion in assets has left the encryption market in a state of uncertainty。
IN OCTOBER AND NOVEMBER, SPOT ETF NET INFLOWS AND NET ASSETS IN BITCOIN
NET ETF INFLOWS AND NET ASSETS IN OCTOBER AND NOVEMBER
BUT WITHIN SEVEN WEEKS OF THE LIQUIDATION, THERE WERE FIVE WEEKS OF CAPITAL OUTFLOWS FROM BITCOIN AND ETF, OVER $5 BILLION AND $2 BILLION, RESPECTIVELY。
AS OF THE WEEK OF 21 NOVEMBER, THE NET ASSET VALUE (NAV) MANAGED BY THE ISSUER OF BITCOIN ETF HAD SHRUNK FROM APPROXIMATELY $164.5 BILLION TO $11.1 BILLION; THE NET ASSET VALUE OF ETF AT TAIFUNG HAD FALLEN FROM $30.6 BILLION TO $16.9 BILLION. THIS DROP WAS PARTLY DUE TO THE FALL IN THE PRICES OF BITCOIN AND THE TAIFUNG ITSELF, AS WELL AS TO THE REDEEMING OF SOME OF THE COINS. IN LESS THAN TWO MONTHS, THE COMBINED NET ASSETS OF BITCOIN AND ETF EVAPORATED ABOUT ONE THIRD。
THE RETURN OF FINANCIAL FLOWS REFLECTS NOT ONLY INVESTOR SENTIMENT, BUT ALSO DIRECTS ETF ISSUER FEES。
Bitcoin and ETF are "printers" for distribution agencies such as Belet, Fuda, Grayscale, Bitwise. Each fund is charged according to the size of the asset held, usually in the form of an annual rate, but is actually charged on a net daily basis。
ON A DAILY BASIS, TRUST FUNDS HOLDING A BITCOIN OR A SHARE OF THE HOTEL ARE SOLD TO PAY FEES AND OTHER OPERATING EXPENSES. FOR THE ISSUER, THIS MEANS THAT THE SIZE OF THE ANNUAL ACCOUNT IS APPROXIMATELY EQUAL TO THE SIZE OF THE ASSET MANAGEMENT (AUM) MULTIPLIED BY THE RATE; FOR THE HOLDER, THIS RESULTS IN THE AMOUNT OF THE CURRENCY IN HAND BEING PROGRESSIVELY DILUTED OVER TIME。
THE ETF ISSUER'S RATE RANGES FROM 0.15 TO 2.50 PER CENT。
Foreclosures or capital outflows themselves do not directly result in profits or losses for the issuer, but they lead to a reduction in the size of the assets that the issuer ultimately manages, thereby reducing the asset base for which fees are charged。
ON 3 OCTOBER, THE TOTAL SIZE OF ASSETS MANAGED BY BITCOIN AND ETF DISTRIBUTORS AMOUNTED TO US$ 15.5 BILLION, WHICH, COMBINED WITH THE ABOVE-MENTIONED RATE LEVELS, WAS CONSIDERABLE. BY 21 NOVEMBER, HOWEVER, THE REMAINING ASSETS OF THOSE PRODUCTS WERE ONLY ABOUT $12.7 BILLION。
IF ANNUALIZED FEE REVENUE IS CALCULATED ON A WEEKEND ASSET MANAGEMENT SCALE, THE POTENTIAL INCOME OF BITCOIN ETF HAS DECREASED BY MORE THAN 25 PER CENT OVER THE PAST TWO MONTHS; ETF ISSUERS ARE MORE AFFECTED, AND THE ANNUALIZED ACCOUNT FOR THE LAST NINE WEEKS HAS FALLEN BY 35 PER CENT。
The bigger the distribution, the worse it gets
In terms of the dimensions of a single issuer, there are three slightly different patterns of financial flows。
FOR BELAID, ITS BUSINESS IS CHARACTERIZED BY THE "SCALE EFFECT" AND "CYCLICAL FLUCTUATIONS". UNDER THE FLAG, IBIT AND ETHA HAVE BECOME THE DEFAULT OPTIONS FOR MAINSTREAM INVESTORS TO CONFIGURE BITCOIN AND ETHERPORT VIA ETF CHANNELS. THIS HAS ENABLED THE WORLD’S LARGEST INSTITUTION TO CHARGE 0.25 PER CENT OF ITS LARGE ASSET BASE, ESPECIALLY WHEN ASSETS REACHED RECORD SIZE IN EARLY OCTOBER, WITH VERY HIGH RETURNS. BUT IT ALSO MEANS THAT IBIT AND ETHA BECOME THE MOST DIRECT SELLER WHEN THE LARGE HOLDERS CHOOSE TO REDUCE RISK IN NOVEMBER。
THE DATA ARE SUFFICIENT TO SUPPORT THE FACT THAT THE ANNUALIZED FEE INCOME OF BELETBITCOIN AND ETF DECLINED BY 28 PER CENT AND 38 PER CENT, RESPECTIVELY, EXCEEDING THE INDUSTRY AVERAGE BY 25 PER CENT AND 35 PER CENT。
FUDA'S SITUATION IS SIMILAR TO THAT OF BELED, BUT ON A RELATIVELY SMALL SCALE. ITS FBT AND FETH FUNDS ALSO FOLLOWED THE "FIRST-IN-OUT" RHYTHM, AND THE OCTOBER MARKET ENTHUSIASM WAS EVENTUALLY REPLACED BY THE NOVEMBER OUTFLOW。
THE GREY SCALE STORY IS MORE ABOUT THE "HISTORICAL LEGACY." ONCE UPON A TIME, GTTC AND ETHE WERE THE ONLY LARGE-SCALE CHANNELS THROUGH WHICH A LARGE NUMBER OF UNITED STATES INVESTORS ALLOCATED BITCOIN AND ETHERPORT THROUGH BROKERING ACCOUNTS. HOWEVER, WITH INSTITUTIONS SUCH AS BELET AND FUDA TAKING OVER THE MARKET, THIS MONOPOLY OF GREYSCALE HAS CEASED TO EXIST. ADDED TO THIS IS THE HIGH TARIFF STRUCTURE OF ITS EARLY PRODUCTS, WHICH HAS LED TO CONTINUED PRESSURE ON FINANCIAL OUTFLOWS OVER THE PAST TWO YEARS。
Market performance in October-November also confirms the investor ' s tendency to shift funds to lower-paying products when the situation is good, and to cut the hold-up across the board when the situation is weak。
THE RATE FOR THE EARLIER GREYSCALE ENCRYPTION PRODUCT IS 6-10 TIMES THE LOW COST ETF. WHILE HIGH RATES CAN PUSH UP THE COLLECTION OF DATA, HIGH COST RATES CAN CONTINUE TO DRIVE INVESTORS AWAY AND REDUCE THE SIZE OF THEIR ASSETS, WHICH EARN FEES. RETAINED FUNDS ARE OFTEN SUBJECT TO FRICTION COSTS SUCH AS TAXES, INVESTMENT DIRECTIVES, OPERATING PROCEDURES, ETC., RATHER THAN TO THE INVESTOR ' S OWN INITIATIVE; AND EACH OUTFLOW REMINDS THE MARKET THAT, ONCE A BETTER CHOICE IS MADE, MORE HOLDERS WILL ABANDON PRODUCTS AT HIGH RATES。
THESE ETF DATA REVEAL SEVERAL KEY FEATURES OF THE CURRENT ENCRYPTED MONETARY INSTITUTIONALIZATION PROCESS。
THE SPOT ETF MARKET FROM OCTOBER TO NOVEMBER SHOWS THAT THE ENCRYPTED CURRENCY ETF MANAGEMENT BUSINESS IS AS CYCLICAL AS THE BOTTOM ASSET MARKET. WHEN ASSET PRICES ARE HIGH AND MARKET MESSAGES ARE GOOD, INFLOWS PUSH UP FEES AND REVENUES, AND WHEN THE MACRO-ENVIRONMENT CHANGES, THE FUNDS QUICKLY WITHDRAW。
While large distribution agencies have established efficient “fee channels” on Bitcoin and Taifeng assets, fluctuations from October to November have shown that these channels are equally vulnerable to market cycles. For the issuer, the core issue is how to retain assets in a new round of market shocks and avoid large fluctuations in fees revenues in response to changes in macrowinds。
While the issuer is unable to prevent investors from redeeming their share of the sale, the yield-type product can cushion downside risks to some extent。
THE ETF PROVIDES INVESTORS WITH REVENUE FROM THE RIGHT TO THE RIGHT (NOTE: THE RESERVE TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO HAVE THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT TO THE RIGHT BY CHARGING ROYALTIES, THE STRATEGY IS AIMED AT INCREASING THE RISK OF HOLDING UP GAINS OR HEDGES.) IT OFFSETS THE FALL IN THE PRICE OF SOME OF THE LOWER ASSETS; A PLEDGE-TYPE PRODUCT IS ALSO A VIABLE DIRECTION. HOWEVER, SUCH PRODUCTS REQUIRE REGULATORY REVIEW BEFORE THEY CAN BE FORMALLY MARKETED。
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