Bitcoin and Ethereum ETFs Witness Sharp Decline in Outflows
Bitcoin ETFs Record Largest Single-Day Outflows Since Launch
According to data from SpotOnChain, Bitcoin ETFs experienced their most significant single-day outflows since their launch in January. The previous record was set in May with an outflow of $563 million. Investors withdrew $671.9 million from the funds, breaking a 15-day streak of inflows.
Fidelity’s FBTC led the sell-off with $208 million in outflows, followed by Grayscale Bitcoin Mini Trust and ARK 21Shares’ ARKB, which saw outflows of $188 million and $108 million, respectively.
WisdomTree’s BTCW bucked the trend, recording $2 million in modest inflows. BlackRock’s IBIT and other ETFs remained flat, with no notable changes.
Ethereum ETFs End Streak
Spot Ethereum ETFs were not spared, with outflows totaling $60.47 million and ending an 18-day streak of inflows.
Grayscale’s ETHE was hit hardest, losing $58.13 million, while Bitwise’s ETHW followed with $6.78 million in outflows. Grayscale’s Ethereum Mini Trust and Invesco’s QETH saw losses exceeding $5 million.
Fidelity’s FETH and VanEck’s ETHV attracted inflows of $5.1 million and $4.9 million, respectively.
However, these gains did not offset the broader market decline, as other Ethereum ETF products recorded zero flows.
Conclusion
The recent decline in outflows for both Bitcoin and Ethereum ETFs is a significant shift from the trend of consistent inflows seen in recent weeks. The outflows are a sign of increased market volatility and a potential decline in investor confidence in the cryptocurrency market.
FAQs
Q: What is the reason behind the decline in outflows?
A: The reason behind the decline in outflows is not explicitly stated in the article, but it can be attributed to increased market volatility and a potential decline in investor confidence.
Q: Which Bitcoin ETFs witnessed the largest outflows?
A: Fidelity’s FBTC led the sell-off with $208 million in outflows, followed by Grayscale Bitcoin Mini Trust and ARK 21Shares’ ARKB, which saw outflows of $188 million and $108 million, respectively.
Q: Which Ethereum ETFs witnessed the largest outflows?
A: Grayscale’s ETHE was hit hardest, losing $58.13 million, while Bitwise’s ETHW followed with $6.78 million in outflows. Grayscale’s Ethereum Mini Trust and Invesco’s QETH saw losses exceeding $5 million.
Q: What is the significance of this decline in outflows?
A: The decline in outflows is a sign of increased market volatility and a potential decline in investor confidence in the cryptocurrency market.
