Understanding the Recent Trends in Bitcoin ETF Performance
The landscape for US Spot Bitcoin ETFs recently experienced notable volatility, marked by a considerable net outflow for the week. Despite a positive influx of $25.59 million on the last trading day, the ETFs closed the week with a net outflow of $301 million. This development is reminiscent of the earlier downturn on September 6, when the weekly net outflow reached $706.19 million.
According to data provided by SoSoValue, this outflow illustrates a significant shift in investor sentiment as the cryptocurrency market transitions into October. This shift has resulted in a decline in the value of Bitcoin and other cryptocurrencies, erasing most of the gains from September. The recent downturn follows a three-week period of consistent inflows, culminating in a substantial net inflow of $1.11 billion in the preceding week.
Friday’s inflows were led by the Bitwise BITB fund and the Fidelity FBTC, which attracted $15.29 million and $13.63 million, respectively. These gains nearly offset the $13.91 million outflow from the Grayscale GBTC fund. However, these late-week gains were insufficient to counteract the broader trend of outflows experienced throughout the week.
Initially, the week began on a positive note with $61.30 million in inflows, but this trend quickly reversed. The subsequent days saw net outflows of $242.53 million, $91.76 million, and $54.13 million on Tuesday, Wednesday, and Thursday, respectively. By week’s end, the total net value of US Spot Bitcoin ETFs dropped to $57.73 billion, a 5.68% decrease from the $61.21 billion recorded on September 27.
Currently, Bitcoin is trading at $62,025, reflecting ongoing market fluctuations.
Spot Ethereum ETFs Mirror Bitcoin ETFs with Weekly Net Outflows
In parallel with the Bitcoin ETFs, Spot Ethereum ETFs also faced a week characterized by net outflows, reversing the inflows of the previous week. Data from SoSoValue indicates that Spot Ethereum ETFs saw an inflow of $7.39 million on the last day of the week. However, this was insufficient to overcome the outflows encountered earlier in the week, resulting in a total net outflow of $30.69 million.
The performance of Spot Ethereum ETFs has historically lagged behind that of Spot Bitcoin ETFs. Since their inception, Ethereum ETFs have only experienced two weeks of net inflows. The latest inflow occurred last week, following a series of six consecutive weeks of outflows.
At the current time, US Spot Bitcoin ETFs hold $57.73 billion in Bitcoin, accounting for 4.68% of the total Bitcoin market capitalization. Similarly, US Spot Ethereum ETFs possess $6.66 billion in Ethereum, representing approximately 2.28% of the total Ethereum market capitalization.
