Bitcoin ETFs See $18.58M Outflow, Ethereum Funds Follow Suit

TLDR:

Bitcoin ETFs saw $18.58 million net outflows on October 8, 2024
Fidelity’s FBTC led outflows with $48.82 million
BlackRock’s IBIT bucked the trend with $39.65 million inflows
Ethereum ETFs also saw $8.19 million in net outflows
Unstable Bitcoin prices may be influencing investor behavior

Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States experienced combined outflows on October 8, 2024, reflecting ongoing market uncertainty and fluctuating cryptocurrency prices.

Data from fund analysts and market trackers revealed that spot Bitcoin ETFs recorded a net outflow of $18.58 million, while Ethereum ETFs saw $8.19 million in exits.

The Bitcoin ETF market showed mixed performance, with some funds experiencing significant outflows while others attracted new investments. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the outflows, shedding $48.82 million. This substantial exit contributed significantly to the day’s overall negative trend. Another major player, Grayscale’s Bitcoin Trust (GBTC), also experienced outflows of $9.41 million.

However, BlackRock’s iShares Bitcoin Trust (IBIT) stood out as the sole fund to attract inflows on October 8. IBIT brought in $39.65 million, partially offsetting the outflows from other funds and demonstrating that some investors remain optimistic about Bitcoin’s prospects. The remaining nine Bitcoin ETFs showed no movement, suggesting that many investors are adopting a wait-and-see approach in the current market climate.

On the Ethereum front, ETFs mirrored the Bitcoin market’s negative sentiment. Bitwise’s Ethereum ETF (ETHW) recorded the largest outflows at $4.54 million, followed by Fidelity’s Ethereum Fund (FETH) with $3.65 million in exits. The other seven spot Ethereum ETFs reported no flows, indicating a similar pattern of investor caution.

These joint outflows come at a time when cryptocurrency prices are showing signs of instability. As of the reporting date, Bitcoin was trading at $62,405, representing a 0.12% decrease over the previous 24 hours. Ethereum, meanwhile, showed a slight gain of 0.48%, trading at $2,450.

The current market dynamics suggest that investors may be reassessing their exposure to digital assets or seeking alternative investment opportunities.

The volatility in Bitcoin prices appears to be a key factor influencing investor behavior, prompting some to reduce their holdings in crypto-related ETFs.

Bitcoin ETFs currently command $57.72 billion in net assets, representing 4.68% of Bitcoin’s total market capitalization.

Ethereum ETFs hold $6.67 billion, accounting for 2.27% of Ethereum’s market cap. These figures underscore the growing importance of these financial products in providing mainstream investors with exposure to the cryptocurrency market.

BlackRock’s Bitcoin and Ethereum ETFs have shown particularly strong performance since their inception, with combined cumulative inflows reaching $22.89 billion. This highlights the ongoing interest in cryptocurrency investments from institutional and retail investors alike, despite short-term fluctuations.