Citi Pushes Bitcoin ETFs Despite $1 Billion Outflow
Citi continues offering Bitcoin and Ethereum ETFs to wealthy clients, even as U.S. spot funds lost nearly $1 billion in two days. The bank points to regulatory clarity and institutional demand.
Key Takeaways
- Citi Wealth presents Bitcoin and Ethereum ETFs as a complement to stocks and bonds for wealthy clients.
- U.S. spot Bitcoin and Ethereum ETFs saw about $1 billion in combined outflows over two trading days.
- Citi’s Custody+ platform is set to start holding Bitcoin for institutional clients later this year, but no launch date has been announced yet.
Citi is putting Bitcoin and Ethereum ETFs in front of wealthy clients, while U.S. spot Bitcoin ETFs saw about $1 billion (€0.9 billion) in outflows over two trading days. That means the bank is positioning crypto as an investment option alongside stocks and bonds, right at a time when the funds are under pressure.
Citi Points to Crypto ETFs
Citi Wealth published the report Expanding the Investable Universe: Introduction to Crypto ETFs in October. It says eligible investors can add new assets alongside their stocks and bonds. The bank also points to the regulatory clarity around these products, growing institutional interest, and the low long-term correlation with traditional investments. At the same time, Citi also warns in the same report about risks and suitability limits.
The timing stands out. On Monday, U.S. Bitcoin and Ethereum ETFs together lost $538 million (€481 million). According to SoSoValue, those funds still managed $111.3 billion (€99.6 billion) that day. That matters for many investors, because these ETFs make crypto accessible through a regular brokerage account, without them having to store coins themselves.
Outflows Put Pressure on Bitcoin
Outflows from U.S. spot Bitcoin ETFs rose to $398.62 million (€357 million) on November 2, after $643 million (€575 million) on October 30. That came alongside the fallout from the hack at Binance, where hackers stole $6.3 billion (€5.6 billion). The earlier outflow after that hack shows how quickly sentiment around Bitcoin ETFs can shift. Ethereum ETFs lost another $139.80 million (€125 million) on November 2, extending the outflow streak from most sessions since early October.
With ETFs, outflows hit the market directly. When investors redeem their shares, issuers usually sell the underlying Bitcoin or hand it back. That adds extra supply to the market. It can affect liquidity and sometimes make the price more volatile, especially if the outflows keep going for a while.
Custody+ Still Has No Date
Citi said in August that its Custody+ platform will start holding Bitcoin for institutional clients later this year. An exact launch date still has not been announced. That fits into a broader trend where major banks and asset managers are adding crypto infrastructure, but with a heavy focus on storage, compliance, and risk management.
For European crypto readers, the big takeaway is that institutional demand for Bitcoin is not only flowing through ETFs, but also through custody services. If major banks roll out those services, that could widen access for professional players even more, although the availability of crypto ETFs still varies a lot by jurisdiction.