Bitrabo Editorial
On September 11, 2024, US spot Bitcoin (BTC) exchange-traded funds (ETFs) experienced a significant net outflow of $43 million, following a brief period of incoming funds, according to SoSoValue.
Major Outflows from Ark Invest and Grayscale’s Bitcoin ETFs
Data from SoSoValue reveals that the predominant outflows occurred in Ark Invest and 21Shares’ ARKB, which saw a considerable net outflow of $54 million. Grayscale’s GBTC spot Bitcoin ETF followed with an outflow of $4.6 million, while another product from Grayscale, the Bitcoin Mini Trust, recorded a smaller outflow of $511,000.
In stark contrast, Fidelity’s FBTC ETF led the day’s net inflows with approximately $12.6 million, whereas Invesco’s BTCO ETF also performed well, garnering $2.59 million in inflows.
Ethereum (ETH) ETFs faced similar challenges, reporting $542,000 in net outflows overall. While Fidelity’s FETH secured $1.17 million in inflows, it was offset by $1.71 million in outflows from VanEck’s ETHV product.
Overall, the 12 spot Bitcoin ETFs monitored by SoSoValue have accumulated $17 billion in net inflows since their launch in January 2024, contrasting sharply with the approximately $563 million net outflow experienced by the 9 Ethereum ETFs. This disparity may stem from a greater level of excitement and institutional support for Bitcoin ETFs compared to Ethereum’s offerings during their respective launches.
Implications of ETF Outflows on Investor Sentiment
The outflows from Bitcoin and Ethereum ETFs may signal that investors are becoming cautious, particularly in light of upcoming macroeconomic events that could introduce volatility, such as the US Federal Reserve potentially cutting interest rates or the forthcoming US Presidential Elections in November 2024.
This recent outflow followed two days of inflows, raising questions about whether the unexpected rise in the US core CPI influenced investors’ decisions to withdraw from their digital asset ETFs. Additionally, it’s plausible that experienced investors are strategically liquidating some assets to secure better reinvestment opportunities, hinting at a potential short-term decline in BTC and ETH prices. This behavior could indicate profit-taking rather than a diminishing confidence in the market.
Despite these outflows, the interest in digital assets from institutional investors appears robust. BlackRock, noted as the largest asset manager globally, has surpassed Grayscale in terms of crypto ETF holdings.
According to a report by Gemini, Bitcoin and Ethereum ETFs have attracted billions of dollars from institutional investors, although ongoing regulatory uncertainties continue to weigh on the crypto market.
As of now, Bitcoin is trading at $57,656, reflecting a 1.3% increase in the last 24 hours, with a market cap of $1.14 trillion. Ethereum is valued at $2,343, climbing 0.2% within the same timeframe and holding a market cap of $281.7 billion. The total market capitalization for cryptocurrencies has reached $2.12 trillion, marking a 0.3% rise over the past day, according to CoinGecko.