Key Points
- Spot bitcoin ETFs in the U.S. experienced net outflows of $43.97 million on Wednesday, ending a two-day streak of positive flows.
- Ethereum ETFs also saw negative flows, with net outflows of approximately $542,870, while their trading volume increased compared to the previous day.
Bitcoin ETFs Face Setback After Recent Gains
The U.S. cryptocurrency ETF market faced a challenging day on Wednesday, September 11, 2024, as data from SoSoValue indicates that spot bitcoin exchange-traded funds (ETFs) recorded total daily net outflows of $43.97 million. This development marks the end of a two-day streak of positive flows for these investment products.
Leading the outflows was the Ark Invest and 21Shares’ ARKB fund, which reported a significant $54.03 million in outflows. Grayscale’s GBTC, a major player in the crypto ETF space, also experienced net outflows of $4.59 million, while its Bitcoin Mini Trust saw around $511,230 leaving the fund.
However, not all funds faced negative flows. Fidelity’s FBTC stood out with net inflows of $12.57 million, while Invesco’s BTCO attracted $2.59 million. Notably, seven other funds, including BlackRock’s IBIT, reported zero daily flows. IBIT, in particular, has not seen net inflows since August 26.
Despite the day’s outflows, the overall picture for bitcoin ETFs remains positive since their launch in January. The 12 bitcoin funds have accumulated an impressive $17 billion in net inflows over the past eight months.
Trading Volume Surges Amid Market Fluctuations
Interestingly, while outflows dominated the day, trading activity for bitcoin ETFs saw a significant uptick. The daily trading volume for these funds reached $1.27 billion on Tuesday, nearly doubling from $712.25 million the previous day. This surge in trading volume suggests continued investor interest and engagement with these products, even as some chose to withdraw funds.
Ethereum ETFs Also Face Headwinds
The ethereum ETF market wasn’t immune to the day’s negative trend. Spot Ethereum ETFs in the U.S. recorded net outflows of about $542,870. Similar to their bitcoin counterparts, most ethereum funds (seven out of nine) posted zero daily flows. VanEck’s ETHV led the outflows with $1.71 million, while Fidelity’s FETH managed to attract $1.17 million in inflows, providing a small bright spot in an otherwise challenging day.
Despite the outflows, ethereum ETFs saw an increase in trading volume. Wednesday’s total daily trading volume reached $126.22 million, up from $102.87 million on Tuesday. This uptick in trading activity, mirroring the trend seen in bitcoin ETFs, hints at ongoing investor engagement despite the day’s negative flows.
The cumulative net outflows for ethereum ETFs now stand at $562.06 million, highlighting the challenges these newer products face in attracting and retaining investor capital.
As the cryptocurrency ETF market continues to evolve, these daily fluctuations provide valuable insights into investor sentiment and market dynamics. While one day of outflows doesn’t necessarily indicate a long-term trend, it serves as a reminder of the volatility and complexity inherent in the cryptocurrency investment landscape.
