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Today, enjoy the On the Margin newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox.\u00a0<\/em>Subscribe to the On the Margin newsletter<\/em><\/a>.<\/em><\/p>\n Welcome to the On the Margin Newsletter, brought to you by Ben Strack and Casey Wagner. Here\u2019s what you\u2019ll find in today\u2019s edition:<\/p>\n US spot ether ETFs now have a three-day track record, and the net flow number (in the red) may be a head-scratcher to those not as familiar with the dynamics at play.<\/p>\n A deeper look at the first three days of ETH fund category flow data may offer some clarity, but of course this remains an early-going snapshot. Note: In parentheses are the negative figures posted by Grayscale\u2019s higher-priced Ethereum Trust ETF<\/a> (ETHE).\u00a0\u00a0<\/p>\n And here\u2019s the US spot BTC fund segment\u2019s flow totals early on (with the Grayscale Bitcoin Trust ETF, or GBTC, separated).<\/p>\n Quickly comparing the initial three-day totals for the spot ETH and BTC offerings, we get:<\/p>\n If we add up the outflows from ETHE and GBTC in their first three days on the market, they are nearly identical, at just under $1.2 billion. Industry watchers expected large outflows from the Grayscale products \u2014 given these were pre-existing trusts with sizable asset bases and price points well above those of their ETF peers.\u00a0\u00a0<\/p>\n CoinShares research head James Butterfill told Blockworks in an email he does not believe the three-day ETH ETF outflow total \u2014 driven by ETHE \u2014 should be viewed negatively.<\/p>\n \u201cIt likely represents a mix of clients taking profits for the first time in many years and switching to cheaper products,\u201d he noted. \u201cWe expect the inflows from the newly issued ETFs to gradually surpass the outflows from the closed-end Grayscale fund.\u201d<\/p>\n The spot ether ETFs are launching during the summer, when trading activity is historically lower. Still, the funds saw trading volumes of roughly $1.1 billion on their opening day Tuesday \u2014 about a quarter of the $4.6 billion in volumes spot BTC funds saw on their Jan. 11 debut.\u00a0\u00a0<\/p>\n Want another interesting stat? The ETH and BTC funds of inflow-leader BlackRock welcomed $355 million and $710 million, respectively, in the first three days of trading.\u00a0<\/p>\n So the iShares Ethereum Trust\u2019s initial inflows (for three days) represent exactly half those of its BTC equivalent. That\u2019s above several estimates<\/a> that the broader ETH ETF category would see about 30% of the inflows reeled in by BTC funds.<\/p>\n How about ether\u2019s price amid the launch? ETH is down about 8% from five days ago.\u00a0<\/p>\n That price response is consistent with the sell-the-news event seen for BTC after bitcoin ETFs launched in January, noted Bitfinex derivatives head Jag Kooner.<\/p>\n He added: \u201cAs the market evolves and more TradFi investors become familiar with Ethereum\u2019s potential, the dynamics could shift, potentially increasing ETH ETF inflows and impacting its price more significantly in the long run.\u201d<\/p>\n \u2014 Ben Strack\u00a0<\/em><\/p>\n The value of the State of Michigan Retirement System\u2019s allocation to the Ark 21Shares Bitcoin ETF, according to a Friday filing<\/a>.\u00a0<\/p>\n This disclosure comes after Wisconsin\u2019s investment board revealed<\/a> in May that it held roughly $160 million worth of bitcoin fund shares.<\/p>\n Jersey City Mayor Steven Fulop said in a Thursday X post<\/a> that the city\u2019s pension fund was set to follow Wisconsin in allocating an unspecified percentage of its assets to bitcoin ETFs.\u00a0<\/p>\n \u201cIt will be completed by [the] end of the summer,\u201d he noted, adding: \u201cI\u2019m sure eventually it will be more common.\u201d<\/p>\n Hello from Nashville!\u00a0<\/p>\n It\u2019s been an eventful 36 hours. Stay tuned for lots of conference coverage and a full event recap on Blockworks.co<\/a> next week. But for now, here\u2019s a quick update on day one of Bitcoin 2024.\u00a0<\/p>\n The big event yesterday was \u201cthe fight\u201d \u2014 a karate combat battle sponsored by Bonk and Influencer Fight Club featuring a headliner mashup of Nic Carter and Coty Kuhn. You truly can\u2019t make this stuff up.\u00a0<\/p>\n If you\u2019re like me and learning about karate combat for the first time, it\u2019s basically full-contact karate. There is a ref, yes. Though his purpose was not immediately clear given I never actually saw him make a call (save for choosing a winner at the end).\u00a0<\/p>\n There was lots of live betting, heckling from the audience and \u2014 shocker \u2014 no line for the women\u2019s restroom.\u00a0<\/p>\n The real headliner though may have been presidential hopeful RFK Jr., who spent most of the evening posing for selfies and flashing a classic faux-bashful Kennedy smile when the crowd periodically burst into \u201cRFK!\u201d chants.\u00a0<\/p>\n Also present was Hailey Welch<\/a>, perhaps better known as \u201chawk tuah girl.\u201d Welch made the rounds, snapped a picture<\/a> with Kennedy and live-streamed the whole thing. It\u2019s unclear whether she knew and\/or cared about the event\u2019s connection to the Bitcoin conference.\u00a0<\/p>\n A handful of blond children ran around the VIP section, pausing to tackle each other on a mat set up outside the ring \u2014 presumably mimicking the moves they\u2019d seen inside.<\/p>\n \u201cKennedy kids,\u201d a bartender told me, nodding toward some not-so-secret Secret Service agents nearby. \u201cCute, right?\u201d\u00a0<\/p>\n \u2014 Casey Wagner<\/em><\/p>\n Happy Friday! We are just days away from the next FOMC meeting. Though central bankers are expected to again hold interest rates steady, let\u2019s review the latest data and what it tells us about September rate cut odds.\u00a0<\/p>\n \u2014 Casey Wagner<\/em><\/p>\n Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter<\/a>.<\/strong><\/p>\n Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter<\/a>.<\/strong><\/p>\n
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\nMake it make sense: The ETH ETF debut<\/h2>\n
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Day 2:<\/strong> -$133 million (ETHE, -$327 million)<\/li>\n\n
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$6.6 million<\/h2>\n
Recap: Bitcoin 2024 day one<\/h2>\n
Did You Notice\u00a0<\/h2>\n
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Bulletin Board<\/h2>\n
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