Crypto ETF State of the Union & SEI’s ETF Expansion

The state of the crypto ETF market and a remarkable ETF growth story headlined this week’s ETF Prime. Host Nate Geraci welcomed Roxanna Islam, head of sector and industry research at VettaFi, followed by Robert Hum of SEI.

Key Takeaways:

• Bitcoin hit $80,000 after a Treasury buyback move weakened the dollar and reignited the debasement trade.
• Spot Bitcoin ETF flows remain down $2.5 billion year-to-date, despite a strong week of inflows.
• SEI’s ETF lineup more than tripled in assets over the past 12 months.

Islam opened with the catalyst behind crypto’s recent surge. Treasury Secretary Scott Bessent announced plans to double long-end bond buybacks to at least $4 billion per operation. That weakened the dollar, reignited the debasement trade, and triggered a significant short squeeze.

Meanwhile, Bitcoin hit $80,000 over that stretch. Ethereum and Solana each gained more than 30%, and Hyperliquid surged nearly 50%.

On the flow side, spot bitcoin ETFs pulled in $2 billion in net inflows last week, while spot ether ETFs added nearly $900 million. Yet year-to-date, spot bitcoin ETF flows remain down $2.5 billion, Islam said.

Islam noted that flows have settled into a barbell pattern, with the iShares Bitcoin Trust
(IBIT) and the Fidelity Wise Origin Bitcoin Fund
(FBTC) anchoring one end, while lower-cost newcomers like the Morgan Stanley Bitcoin ETF
(MSBT) attract the other.

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Crypto ETF Closures and the Altcoin Opportunity

The market is also becoming more selective. REX Osprey recently closed its staked ether and bitcoin ETFs, while Grayscale withdrew filings for Cardano, Polkadot, and Hedera ETFs. Islam said this reflects demand concentration rather than lost investor interest, with solana spot ETFs gathering over $400 million year-to-date as evidence.

See more:Crypto ETFs: A More Selective Market Emerges

Hyperliquid also stood out as a catalyst. Three spot Hyperliquid ETFs launched in May have drawn roughly $300 million in inflows, with the underlying token up nearly 80% over that span. Islam cited a clear revenue model from perpetual futures trading fees and built-in buybacks as making it an easier valuation story than most altcoins.

Robert Hum, head of investment product and commercialization at SEI, also joined this week. He detailed how SEI’s ETF lineup grew from $2.5 billion to over $9 billion in the past 12 months, driven by single-factor funds hitting three-year track records, model portfolio integration, and advisor network demand.

SEI ranks fifth in Morningstar’s model asset report, with $50 billion in U.S. model portfolios. Hum highlighted the SEI Enhanced U.S. Large Cap Value Factor ETF
(SEIVB) and the SEI Enhanced U.S. Large Cap Momentum Factor ETF
(SEIMB), each at 15 basis points, as flagship strategies. The SEI High Yield Bond & Alternative Credit ETF
(LENDC) brings institutional sub-advisors including Ares and Brigade into the ETF wrapper.

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Source: etfdb.com