Key Points
– U.S. spot Bitcoin ETFs experienced net outflows of $91.7 million on Wednesday, led by Ark’s ARKB with $60.2 million in outflows.
– Spot Ethereum ETFs saw a contrasting trend with $14.45 million in net inflows, primarily driven by BlackRock’s ETHA fund.
Bitcoin ETFs Face Second Day of Outflows
The U.S. spot Bitcoin ETF market encountered its second consecutive day of net outflows on Wednesday, October 2, 2024, totaling $91.76 million. This trend was primarily led by Ark and 21Shares’ ARKB product, which saw $60.28 million exit the fund. Grayscale’s GBTC, the second-largest spot Bitcoin ETF by net assets, followed with $27.31 million in outflows.
Notably, BlackRock’s IBIT, the largest spot Bitcoin ETF, reported net outflows of $13.74 million, marking its first daily outflows since September 9. Bitwise’s BITB also experienced outflows of $11.51 million, while the remaining seven spot Bitcoin ETFs recorded no flows.
The total trading volume for all Bitcoin ETFs decreased significantly, dropping to $1.66 billion on Wednesday from $2.53 billion the previous day. This decline in volume coincided with a slight dip in Bitcoin’s price, which edged down 0.46% over 24 hours to trade at approximately $61,183.
Ethereum ETFs Buck the Trend with Inflows
In contrast to their Bitcoin counterparts, U.S. spot Ethereum ETFs recorded net inflows of $14.45 million on Wednesday, reversing the previous day’s outflows of $48.52 million. BlackRock’s ETHA led this positive trend with $18.04 million flowing into the fund.
However, not all Ethereum ETFs saw inflows. Franklin Templeton’s EZET reported net outflows of $1.81 million, and the Grayscale Ethereum Trust (ETHE) was the only spot Ether ETF to record significant negative flows, with outflows of $5.4 million. The six other spot Ether ETFs maintained zero flows.
Despite the inflows, the total trading volume for Ethereum ETFs also decreased, falling to $197.82 million on Wednesday from $290.81 million on Tuesday. This occurred as Ether’s price slid 3.77% to $2,391.
Market Implications and Future Outlook
The contrasting flows between Bitcoin and Ethereum ETFs suggest a potential shift in investor sentiment or strategy within the cryptocurrency ETF space. While Bitcoin ETFs face challenges, Ethereum products seem to be gaining traction, at least in the short term.
These movements come at a time when the broader cryptocurrency market is experiencing volatility, with Bitcoin and Ether both seeing price declines. As the market continues to evolve, investors and analysts will be closely watching these ETF flows for indications of broader trends in cryptocurrency investment strategies.
The performance of these relatively new ETF products, particularly the spot Bitcoin ETFs launched earlier this year, will likely play a crucial role in shaping the future of cryptocurrency investment vehicles and their adoption by both retail and institutional investors.
