As a seasoned researcher who has witnessed the cryptocurrency market’s rollercoaster ride for years now, I can’t help but feel a sense of deja vu when observing the recent trends in Bitcoin and Ethereum ETFs. The ebb and flow of investor sentiment is truly fascinating, isn’t it? One moment they’re rushing to invest, and the next, they’re pulling out their hard-earned dollars faster than a cat retracts its claws.
The price of Bitcoin has dropped approximately 10% over the past week, an event that might not come as a shock considering the significant withdrawals noticed from U.S.-based Bitcoin Exchange Traded Funds (ETFs).
Each week, ETH‘s condition appears increasingly dire, whereas Ethereum-based ETF proposals have yet to pique investor enthusiasm.
Bitcoin ETFs on a Negative Streak
Last week, it was reported by CryptoPotato that Bitcoin Exchange-Traded Funds (ETFs) have seen a significant increase in demand since the early-August crisis. In fact, these ETFs had inflows for 12 out of the 14 days leading up to August 27. The effect of these financial vehicles on bitcoin’s price was quite clear as the asset reached over $65,000 on Monday.
On Tuesday, there was a negative shift in the environment surrounding ETFs, as investors withdrew a significant amount of $127.1 million that day. The Ark Invest’s ARKB fund led this unfavorable trend, withdrawing approximately $102 million. Further withdrawals totaling $105.3 million occurred on Wednesday, and an additional $71.8 million was withdrawn on Thursday.
On Friday, daily flows hit a six-week low, with investors withdrawing approximately $175.6 million from ETFs. Leading the exodus was Grayscale’s GBTC with $70.2 million in redemptions, closely followed by ARKB with $65 million.
In essence, these withdrawals canceled out the $202.6 million in positive flows that occurred on Monday, resulting in a total of $277.2 million being withdrawn over the five-day period. Simultaneously, the price of Bitcoin dropped from its peak on Monday to approximately $58,000 during this same timeframe.
No Demand for Ethereum
Despite significant anticipation surrounding the release of ETFs following the second-largest cryptocurrency’s performance, it appears that these investment products have not garnered a substantial level of interest. In fact, on eleven out of the fourteen trading days since their launch, they have experienced losses.
As a crypto investor, I find it concerning that the trading volumes have been rather low lately. Last week, there wasn’t much activity at all, and Friday was particularly quiet with no significant flow of trades reported by Farside.
Previously, there were small withdrawals totaling $1.7 million on Thursday and $3.4 million on Tuesday. The only day that saw inflows since August 14 was Wednesday, with a total of $5.9 million, but $13.2 million was withdrawn on Monday. In summary, the week concluded with a net withdrawal of $12.4 million.
In the last week, the price of Ethereum (ETH) has significantly dropped, shedding more than 10% of its worth, and is currently trading below $2,500.
Read More
- ACT PREDICTION. ACT cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- Skull and Bones Players Report Nerve-Wracking Bug With Reaper of the Lost
- W PREDICTION. W cryptocurrency
- NBA 2K25 Review: NBA 2K25 review: A small step forward but not a slam dunk
- Why has the smartschoolboy9 Reddit been banned?
- Understanding Shinjiro: The Persona 3 Character Debate
- Unlocking Destiny 2: The Hidden Potential of Grand Overture and The Queenbreaker
- AAVE PREDICTION. AAVE cryptocurrency
- ESO Werewolf Build: The Ultimate Guide
2024-09-01 11:06