Key Points
– US spot Bitcoin ETFs experienced a net weekly outflow of $300 million, breaking a three-week positive trend and coinciding with Bitcoin’s price drop from $65,000 to $62,000.
– Ethereum ETFs also saw a net weekly outflow of $30.7 million, with BlackRock’s ETHA fund dropping below $1 billion in net asset value as Ether’s price fell from $2,700 to $2,400.
Bitcoin ETFs See First Weekly Outflow Since Early September
Days from SoSoValue indicates that, in a reversal of recent trends, US-based spot Bitcoin exchange-traded funds (ETFs) recorded a net negative outflow for the week ending October 4, 2024. This marks the first weekly outflow since September 6, breaking a three-week streak of positive inflows.
The total net assets held by Bitcoin ETFs declined from $61.21 billion on September 27 to $57.73 billion by the end of the week. This reduction can be attributed to both the outflows and Bitcoin’s price decline from approximately $65,000 to $62,000 over the same period.
Despite the overall weekly outflow, Friday, October 4, saw a modest daily net inflow of $25.6 million. Bitwise’s BITB fund led the day’s inflows with $15.3 million, followed by Fidelity’s FBTC with $13.6 million. VanEck’s HODL and Ark & 21Shares’ ARKB tied for third place with $5.29 million each.
Grayscale’s GBTC was the only fund to record outflows on Friday, with $13.9 million leaving the fund.
Ethereum ETFs Mirror Bitcoin’s Trend
Ethereum ETFs followed a similar pattern, ending the week with a net negative outflow of $30.7 million despite a modest daily inflow of $7.4 million on Friday, October 4.
BlackRock’s ETHA fund led Friday’s inflows with $14.7 million, while Bitwise’s ETHW saw $871,000 in inflows. However, these gains were offset by $8.2 million in outflows from Grayscale’s ETHE fund.
The overall decline in Ethereum ETF assets was further exacerbated by Ether’s price drop from around $2,700 on September 27 to approximately $2,400 by October 4.
Market Implications and Fund Strategies
The recent outflows and price volatility have had notable impacts on some of the largest cryptocurrency ETFs. BlackRock’s spot Ethereum fund, which had recently surpassed $1 billion in net asset value, has now fallen below this threshold to $987.6 million.
In response to market conditions, some fund managers are adapting their strategies. Bitwise, for instance, has announced plans to revamp its three crypto futures ETFs by incorporating Treasuries to help reduce volatility and potentially improve risk-adjusted returns.
As the cryptocurrency ETF market continues to evolve, investors and analysts will be closely watching to see if these outflows represent a temporary setback or a more significant shift in market sentiment towards digital asset investment vehicles.
