by Coinstrooper Crypto Articles
Quick Take
  • Citi is pitching spot Bitcoin and Ethereum ETFs (exchange-traded funds) to its wealth clients.
  • Over the last two trading sessions, investors pulled about $1 billion from US Bitcoin ETFs.
  • On Monday, US Bitcoin and Ethereum ETFs lost $538 million combined.
  • These funds, which let investors own crypto through a brokerage account, held $111.3 billion that day, per SoSoValue.

What Happened

Citi is pitching spot Bitcoin and Ethereum ETFs (exchange-traded funds) to its wealth clients. Over the last two trading sessions, investors pulled about $1 billion from US Bitcoin ETFs.

On Monday, US Bitcoin and Ethereum ETFs lost $538 million combined. These funds, which let investors own crypto through a brokerage account, held $111.3 billion that day, per SoSoValue.

Citi Wealth published “Expanding the Investable Universe: Introduction to Crypto ETFs” in October. It says suitable investors want new assets to sit beside their stocks and bonds.

US spot Bitcoin ETFs lost $398.62 million on November 2, SoSoValue data shows. Investors had pulled $643 million out on October 30, a day after hackers took $6.3 billion from Binance.

When investors redeem ETF shares, issuers sell or hand back the Bitcoin behind them. Withdrawals therefore add supply to the coin’s market.

Why Citi’s Bitcoin Custody Launch Has No Date

By Sigel’s count, that makes Citi the sixth of 29 global systemically important banks, the lenders regulators treat as too big to fail, with Bitcoin custody live or announced. JPMorgan has said custody is off the table for now, he added.

“The Binance hack last week could be one reason Citi has stayed quiet on timing. I heard that the service was already set for launch last week,” he said.

Whether Citi names a date before December 31, and whether ETF withdrawals ease, will show if Wall Street’s build-out and investor demand line up again.

Market Context

What Citi’s Crypto Report Tells Its Clients

How Much Money Has Left the Funds?

Why It Matters

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.

Details

Ethereum ETFs shed $139.80 million on November 2, extending outflows seen in most sessions since early October.

Still, the latest Bitcoin outflow equals about 0.4% of the $98.12 billion the funds hold. BlackRock’s IBIT alone lost $405.3 million in a day, BeInCrypto reported.

Citi said in August that its Custody+ platform will start safekeeping Bitcoin for institutions later this year.

Sigel also offered an unconfirmed reason for the silence.

Citi has not confirmed that account, and its public guidance remains “later this year.” BeInCrypto first reported the Citi custody plans in August.

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