Bitcoin (BTCUSD) and Ethereum (ETHUSD) are experiencing renewed outflows from spot ETFs, with around $500 million and $600 million in weekly net outflows, respectively. Charles Schwab's equity research director, Adam Lynch, attributes this to tactical institutional trading rather than a decline in long-term demand. He notes that investors are leveraging crypto ETFs for short-term capital movements due to their liquidity and cost efficiency.
Looking ahead, Lynch expects crypto ETFs to expand beyond Bitcoin and Ethereum to include assets like XRP (XRPUSD), Solana (SOLUSD), and Dogecoin (DOGEUSD). Potential catalysts for the next crypto rally include regulatory progress and Ethereum’s upcoming Q4 network upgrade, which aims to enhance speed and capacity. Despite the setback of the Clarity Act, both the CFTC and SEC are advancing separate crypto regulatory initiatives.
Grayscale’s research head, Zach Pandl, believes Bitcoin has already bottomed near $58,000 in June, despite challenges like Fed rate hikes, rising bond yields, and regulatory uncertainty. He anticipates that Bitcoin will withstand further modest rate hikes due to sustained demand for scarce assets amid fiscal deficits and currency debasement concerns.
In a Coinage interview on October 15, Pandl highlighted Ethereum (ETHUSD), Solana (SOLUSD), and BNB Chain (BNBUSD) as overlooked opportunities with growing institutional adoption. He expects trillions of dollars in traditional finance (TradFi) assets to move on-chain, positioning established smart contract platforms as critical infrastructure. Pandl also noted increasing investor enthusiasm for privacy-focused cryptocurrencies and revenue-generating protocols.