Key Takeaways
- • Citi Wealth is pitching spot Bitcoin and Ethereum ETFs to its wealth clients, based on an October report titled "Expanding the Investable Universe: Introduction to Crypto ETFs" that cites regulatory clarity, institutional adoption, and low long-term correlation with traditional assets.
- • US spot Bitcoin ETFs lost $398.62 million on November 2, following $643 million in outflows on October 30, per SoSoValue data cited by BeInCrypto.
- • US Bitcoin and Ethereum ETFs lost $538 million combined on Monday, when the funds held $111.3 billion in assets, according to SoSoValue.
- • Citi's Custody+ platform, announced in August, is slated to begin safekeeping Bitcoin for institutions later this year, with no confirmed launch date.
- • The latest Bitcoin ETF outflow equals roughly 0.4% of the $98.12 billion held by the funds, and BlackRock's IBIT alone lost $405.3 million in a single day.
Summary
Citi is marketing spot Bitcoin and Ethereum exchange-traded funds to its wealth clients even as US crypto ETFs have seen substantial redemptions. According to BeInCrypto, investors pulled roughly $1 billion from US Bitcoin ETFs over the last two trading sessions. US Bitcoin and Ethereum ETFs lost $538 million combined on Monday, when the funds held $111.3 billion, per SoSoValue.
Citi Wealth's October publication, "Expanding the Investable Universe: Introduction to Crypto ETFs," argues that suitable investors may want new assets to sit alongside stocks and bonds. The report cites regulatory clarity, institutional adoption, and low long-term correlation with traditional assets, meaning crypto has not tended to move in step with them. It also lists risks and suitability limits.
Outflows have been concentrated in recent sessions. US spot Bitcoin ETFs lost $398.62 million on November 2, after $643 million left on October 30, a day after hackers took $6.3 billion from Binance. Ethereum ETFs shed $139.80 million on November 2, extending outflows seen in most sessions since early October. When investors redeem ETF shares, issuers sell or return the underlying Bitcoin, adding supply to the market. Even so, the latest Bitcoin outflow represents about 0.4% of the $98.12 billion held by the funds. BlackRock's IBIT alone lost $405.3 million in one day, BeInCrypto reported.
On custody, Citi said in August that its Custody+ platform will begin safekeeping Bitcoin for institutions later this year. Citing its own count, analyst Sigel said Citi is the sixth of 29 global systemically important banks to have Bitcoin custody live or announced; he added that JPMorgan has said custody is off the table for now. Sigel offered an unconfirmed explanation for Citi's silence on timing, suggesting the Binance hack may have played a role and that the service was reportedly set for launch the prior week. Citi has not confirmed this, and its public guidance remains "later this year."
The key open questions are whether Citi names a custody launch date before December 31 and whether ETF outflows ease, which will indicate whether Wall Street's infrastructure build-out and investor demand align.
Citi Wealth's October publication, "Expanding the Investable Universe: Introduction to Crypto ETFs," argues that suitable investors may want new assets to sit alongside stocks and bonds. The report cites regulatory clarity, institutional adoption, and low long-term correlation with traditional assets, meaning crypto has not tended to move in step with them. It also lists risks and suitability limits.
Outflows have been concentrated in recent sessions. US spot Bitcoin ETFs lost $398.62 million on November 2, after $643 million left on October 30, a day after hackers took $6.3 billion from Binance. Ethereum ETFs shed $139.80 million on November 2, extending outflows seen in most sessions since early October. When investors redeem ETF shares, issuers sell or return the underlying Bitcoin, adding supply to the market. Even so, the latest Bitcoin outflow represents about 0.4% of the $98.12 billion held by the funds. BlackRock's IBIT alone lost $405.3 million in one day, BeInCrypto reported.
On custody, Citi said in August that its Custody+ platform will begin safekeeping Bitcoin for institutions later this year. Citing its own count, analyst Sigel said Citi is the sixth of 29 global systemically important banks to have Bitcoin custody live or announced; he added that JPMorgan has said custody is off the table for now. Sigel offered an unconfirmed explanation for Citi's silence on timing, suggesting the Binance hack may have played a role and that the service was reportedly set for launch the prior week. Citi has not confirmed this, and its public guidance remains "later this year."
The key open questions are whether Citi names a custody launch date before December 31 and whether ETF outflows ease, which will indicate whether Wall Street's infrastructure build-out and investor demand align.
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