Key Points
– U.S. spot bitcoin ETFs experienced their largest daily net outflows since early September, totaling $242.53 million, ending an eight-day streak of positive flows.
– Ether ETFs also saw substantial outflows of $48.52 million, with major cryptocurrencies Bitcoin and Ethereum seeing price drops of 3.47% and 5.89% respectively.
Bitcoin ETFs Record Massive Outflows
On Tuesday, October 1, 2024, U.S. spot bitcoin exchange-traded funds (ETFs) witnessed a significant reversal in investor sentiment, recording $242.53 million in net outflows. This marked the largest daily outflow since September 3 and brought an end to an eight-day streak of positive flows.
Fidelity’s FBTC led the exodus, with $144.67 million exiting the fund. Ark and 21Shares’ ARKB followed closely, reporting net outflows of $84.35 million, its largest since August 27. Other major players also felt the impact:
– Bitwise’s BITB: $32.7 million in outflows
– VanEck’s fund: $15.75 million in outflows
– Grayscale’s GBTC (second-largest spot bitcoin ETF): $5.9 million in outflows
Interestingly, BlackRock’s IBIT, the largest spot bitcoin ETF by net assets, bucked the trend by recording positive flows of $40.84 million.
Ethereum ETFs Not Spared
The bearish sentiment extended to Ethereum ETFs as well. Spot Ethereum ETFs in the U.S. saw net outflows totaling $48.52 million on the same day. The breakdown of outflows was as follows:
– Grayscale Ethereum Trust: $26.64 million
– Fidelity’s FETH: $24.97 million (its largest daily net outflows on record)
– Bitwise’s ETHW: $895,650
However, not all Ethereum ETFs were in the red. VanEck’s ETHV and 21Shares’ CETH managed to attract inflows of $2.74 million and $1.25 million respectively.
Market Impact and Trading Volumes
The outflows coincided with a downturn in cryptocurrency prices. Bitcoin fell 3.47% over 24 hours, trading at $61,446, while Ethereum experienced a steeper decline of 5.89%, changing hands at $2,480.
Despite the negative flows, trading volumes for both Bitcoin and Ethereum ETFs saw a significant uptick:
– Spot Bitcoin ETFs: $2.53 billion (up from $1.37 million on Monday)
– Spot Ethereum ETFs: $290.81 million (up from $149.14 million on Monday)
This surge in trading volume suggests increased market activity, potentially driven by a mix of profit-taking and repositioning by investors in response to the price movements.
As the crypto market continues to evolve, these ETF flows provide valuable insights into investor sentiment and market dynamics. The coming days will be crucial in determining whether this outflow represents a temporary blip or the beginning of a more prolonged trend in the cryptocurrency investment landscape.
