Key Points
- U.S.-based spot Bitcoin ETFs have reached their lowest total asset value since May 1, 2024, dropping below $50 billion after a week of bearish crypto market activity.
- Spot Ethereum ETFs’ total asset value has hit an all-time low, falling to $6.09 billion, a 41% decrease from its initial trading value.
Bitcoin ETFs Face Significant Outflows
The cryptocurrency market experienced a bearish week, with only three of the top 50 tokens by market cap showing gains. This downturn has substantially impacted U.S.-based spot Bitcoin and Ethereum exchange-traded funds (ETFs), pushing their values to new multi-month lows.
On Friday, September 7, 2024, U.S. spot Bitcoin ETFs recorded nearly $170 million in outflows, bringing the total cumulative value of the 12 funds on the market to $48.24 billion. This marks the first time in a month that the value has fallen below $50 billion and represents the lowest cumulative value since May 1. According to data from SoSoValue, similar numbers were last seen at the end of February.
While industry leader BlackRock’s IBIT fund remained stable with no inflows or outflows, other major players experienced significant outflows:
- Grayscale’s GBTC: $53 million outflow
- Fidelity’s FBTC: $85 million outflow (the highest for Friday)
- Bitwise’s BITB: $14 million outflow
- Ark & 21Shares ARKB: $7 million outflow
- Grayscale’s BTC Mini Trust and Valkyrie’s BRRR: Approximately $5 million outflow each
This marks the eighth consecutive trading day of outflows for spot Bitcoin funds, indicating a persistent trend of investors withdrawing their assets.
Ethereum ETFs Hit All-Time Low
The situation for Ethereum ETFs is even more pronounced. The total asset value of U.S.-based exchange-traded funds trading Ether fell to its lowest recorded value after $6 million in outflows, bringing the total value held by the funds to just $6.09 billion. This represents a staggering 41% drop from the total asset value of $10.24 billion on the first day of trading, as reported by SoSoValue.
On Friday, only two Ethereum ETFs saw changes in net asset value:
- Grayscale’s ETHE: $10 million outflow
- BlackRock’s ETHA: $4.7 million inflow
This continues a streak of six days of negative or zero outflows for Ethereum ETFs. These funds have experienced a total outflow of approximately $91 million in September alone.
Market Implications and Future Outlook
The consistent outflows from Bitcoin and Ethereum ETFs reflect the broader cryptocurrency market’s bearish sentiment. These investment vehicles were introduced to provide easier access to crypto assets for traditional investors, and their performance is closely watched as an indicator of institutional and retail interest in the cryptocurrency space.
The current trend raises questions about the short-term future of cryptocurrency investments and whether this downturn is a temporary correction or a sign of waning interest. However, it’s important to note that the cryptocurrency market is volatile, and long-term trends may differ significantly from short-term fluctuations.
As the market continues to evolve, investors and analysts will closely monitor these ETFs for signs of recovery or further decline, which could provide insights into the overall health and direction of the cryptocurrency market.
