Key Points
- US spot bitcoin ETFs experienced $18.66 million in net outflows on Tuesday, ending a two-day streak of positive flows, with Fidelity’s FBTC leading the outflows.
- Spot Ethereum ETFs also saw net outflows of $8.19 million, with Bitwise’s ETHW experiencing the largest outflows among ether funds.
Bitcoin ETFs: A Day of Outflows
The cryptocurrency exchange-traded fund (ETF) market experienced a shift on Tuesday, October 8, 2024, as US spot bitcoin ETFs recorded $18.66 million in net outflows. This development marked the end of a two-day streak of positive flows, indicating a change in investor sentiment or strategy.
According to SoSoValue, Fidelity’s FBTC led the outflows, with $48.82 million exiting the fund. Grayscale’s GBTC, the second-largest spot bitcoin ETF by net assets, also saw significant movement with $9.41 million in outflows, following a day of no flows.
Despite the overall negative trend, BlackRock’s IBIT, which holds the title of the largest spot bitcoin ETF, managed to attract $39.57 million in inflows. This positive flow for IBIT stood out as the only inflow among the 12 spot bitcoin ETFs, with the remaining nine funds reporting zero flows.
The total trading volume for all 12 bitcoin ETF products reached $1.35 billion on Tuesday, showing an increase from Monday’s $1.22 billion. This uptick in trading volume suggests continued investor interest and activity in the bitcoin ETF market, despite the net outflows.
Ethereum ETFs: Following the Downward Trend
In parallel with the bitcoin ETF market, spot Ethereum ETFs in the US also experienced outflows on Tuesday. After a day of zero flows on Monday, ether ETFs recorded $8.19 million in net outflows.
Bitwise’s ETHW bore the brunt of the outflows, with $4.54 million leaving the fund. Fidelity’s FETH also saw significant outflows of $3.65 million. The remaining seven spot ether ETFs reported no flows, mirroring the pattern seen in most bitcoin ETFs.
The trading volume for the nine Ethereum ETFs decreased to $102.37 million on Tuesday, down from $118.43 million the previous day. This reduction in trading volume, coupled with the outflows, may indicate a temporary cooling of investor interest in Ethereum-based products.
Market Implications and Future Outlook
The simultaneous outflows from both bitcoin and Ethereum ETFs suggest a broader trend affecting the cryptocurrency ETF market. These movements could be attributed to various factors, including profit-taking, reallocation of assets, or shifts in market sentiment due to macroeconomic conditions.
As the cryptocurrency ETF landscape continues to evolve, investors and analysts will be closely monitoring these flow patterns. The coming days and weeks will be crucial in determining whether this trend of outflows persists or if it’s a temporary fluctuation in an otherwise growing market for cryptocurrency investment products.
