A U.S.-based spot Bitcoin (BTC) exchange-traded fund (ETF) recorded a net outflow of $43 million on September 11, 2024, after two days of inflows. data Verified by SoSoValue.
Ark Invest and Grayscale Lead Bitcoin ETF Exodus
According to data According to crypto ETF data provider SoSoValue, US spot BTC ETF outflows were led by Ark Invest and 21Shares' ARKB, which saw a net outflow of $54 million yesterday. This was followed by Grayscale's GBTC Spot Bitcoin ETF, which saw a net outflow of $4.6 million. Notably, Bitcoin MiniTrust, another Grayscale product, saw a net outflow of $511,000.
Conversely, Fidelity's FBTC led the way in net inflows on the day, attracting nearly $12.6 million, followed by Invesco's BTCO, which recorded net inflows of $2.59 million.
The Ethereum (ETH) ETF also had a similar day, with net outflows of $542,000. Fidelity’s FETH attracted net inflows of $1.17 million, but this was offset by net outflows of $1.71 million seen in VanEck’s ETHV product.
The 12 spot bitcoin ETFs tracked by SoSoValue have attracted cumulative net inflows of $17 billion since their inception in January 2024. In comparison, the nine spot Ethereum ETFs have attracted cumulative net outflows of about $563 million.
Among other factors, the big difference between the performance of the Bitcoin ETF and the Ethereum ETF is that the Ethereum ETF I didn't There is a sense of excitement within the cryptocurrency industry and strong interest from institutional investors, something that the Bitcoin ETF appears to have benefited from when it was launched.
What do ETF outflows say about investor confidence?
The outflows from Bitcoin and Ethereum ETFs could signal investor caution ahead of sensitive macroeconomic events that could trigger volatility in the crypto market, such as the Federal Reserve's interest rate cut decision next week and the U.S. presidential election scheduled for November 2024.
Given that the aforementioned net outflows occurred after two days of net inflows, it may be worth considering whether yesterday’s better than expected U.S. core CPI reading influenced investors’ decisions to pull money out of digital asset ETFs.
It is also possible that smarter investors are simply withdrawing their funds in hopes of a better entry point to reinvest in these assets, which could mean that the price of BTC and ETH may temporarily decline. As a result, net outflows may be a sign of strategic profit-taking by investors rather than a loss of confidence in the underlying asset class.
Recent developments suggest that institutional interest in digital assets is not waning. BlackRock, the world's largest asset manager, said: Eclipsed Grayscale will likely solidify its position as the cryptocurrency ETF's largest holding.
Additionally, a report from cryptocurrency exchange Gemini attention Bitcoin and Ethereum ETFs have generated billions of dollars worth of inflows from institutional investors, but regulatory uncertainty surrounding cryptocurrencies remains a concern.
At press time, Bitcoin was trading at $57,656, up 1.3% in the past 24 hours, for a market cap of $1.14 trillion. Ethereum was trading at $2,343, up just 0.2% in the past 24 hours, for a market cap of $281.7 billion. The cryptocurrency market cap is $2.12 trillion, up 0.3% in the past 24 hours, according to CoinGecko data.
Featured image from Unsplash.com, chart from TradingView.com
