On September 11, 2024, US-based spot Bitcoin (BTC) exchange-traded funds (ETFs) experienced a net outflow of $43 million, following two consecutive days of inflows. This information comes from data provided by SoSoValue, a prominent crypto ETF data provider.
Ark Invest and Grayscale Lead Bitcoin ETF Outflows
According to SoSoValue, the significant outflows from US spot BTC ETFs were predominantly driven by Ark Invest and 21Shares’ ARKB, which saw a substantial net outflow of $54 million. Grayscale’s GBTC spot Bitcoin ETF also experienced a notable net outflow, amounting to $4.6 million. Additionally, another Grayscale product, the Bitcoin Mini Trust, faced a net outflow of $511,000.
In contrast, the net inflows for the day were led by Fidelity’s FBTC, which attracted nearly $12.6 million, followed closely by Invesco’s BTCO with $2.59 million in net inflows. This shows a mixed sentiment among investors, with some shifting their investments to different Bitcoin ETFs.
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Ethereum ETFs Also Witness Outflows
Ethereum (ETH) ETFs mirrored the trend seen in Bitcoin ETFs, recording $542,000 in net outflows. Despite Fidelity’s FETH attracting $1.17 million in net inflows, this was overshadowed by $1.71 million in net outflows from VanEck’s ETHV product. This indicates a slightly bearish sentiment towards Ethereum ETFs on the same day.
Cumulatively, the 12 spot Bitcoin ETFs tracked by SoSoValue have amassed $17 billion in net inflows since their inception in January 2024. In stark contrast, the 9 spot Ethereum ETFs have experienced a cumulative net outflow of approximately $563 million. This disparity highlights the differing levels of interest and confidence in these two leading cryptocurrencies.
Factors Behind the Performance Disparity
One of the reasons for the significant difference in performance between Bitcoin and Ethereum ETFs could be attributed to the anticipation and interest from institutional investors. Bitcoin ETFs likely benefited from a higher level of excitement and institutional participation during their launch, which was not as prominent for Ethereum ETFs.
What Could ETF Outflows Suggest About Investor Confidence?
The outflows from Bitcoin and Ethereum ETFs may suggest that investors are exercising caution ahead of macroeconomic events that could introduce volatility to the crypto markets. Key events such as the US Federal Reserve’s (Fed) impending decision on interest rates next week and the upcoming US Presidential Elections in November 2024 are potential catalysts for market fluctuations.
Given that these net outflows occurred after two days of net inflows, it is worth considering whether the higher-than-expected US core CPI reading influenced investors’ decisions to withdraw some funds from their digital asset ETFs. This could be a strategic move by investors anticipating better entry points to reinvest in these assets, potentially signaling a temporary pullback in BTC and ETH prices.
It is also possible that savvy investors are engaging in strategic profit-taking rather than losing confidence in the underlying assets. The recent developments underscore that institutional appetite for digital assets remains strong. For instance, BlackRock, the world’s largest asset manager, has surpassed Grayscale to become the company with the highest crypto ETF holdings.
Moreover, a report by cryptocurrency exchange Gemini highlighted that Bitcoin and Ethereum ETFs have attracted billions of dollars in inflows from institutional investors. However, regulatory uncertainties surrounding the crypto market continue to be a cause for concern.
Current Market Overview
As of the latest data, Bitcoin is trading at $57,656, marking a 1.3% increase over the past 24 hours, with a total market cap of $1.14 trillion. Ethereum is trading at $2,343, showing a modest 0.2% rise in the last 24 hours and a total market cap of $281.7 billion. The overall crypto market cap stands at $2.12 trillion, reflecting a 0.3% increase in the last 24 hours, according to CoinGecko.
In conclusion, the recent outflows from Bitcoin and Ethereum ETFs might indicate a strategic repositioning by investors rather than a complete loss of confidence. As the market navigates through upcoming macroeconomic events, these trends will be crucial to watch in gauging the future direction of digital asset investments.
