As a seasoned analyst with over two decades of experience in the financial markets, I find the current state of spot Bitcoin and Ethereum ETFs quite intriguing. The prolonged negative streak in Bitcoin ETFs is reminiscent of a stubborn bear market that just won’t quit.
As a researcher, I’ve observed that the unfavorable trend regarding the flow of spot Bitcoin ETFs persisted throughout the last week, extending it to the longest streak since these financial products were approved back in mid-January.
Meanwhile, it’s noticeable that Ethereum alternatives are experiencing relatively low levels of engagement, as investor demand and enthusiasm seem to be notably absent.
Bitcoin ETFs’ Negative Streak
Last weekend, CryptoPotato noted significant withdrawals totaling $277.2 million over a five-day trading span. However, the situation has deteriorated further in the last week, with the exception of September 2nd, which was a U.S. national holiday.
Over the course of a trading week spanning four days, investors withdrew a total of approximately $696.1 million, with withdrawals amounting to $287.8 million on Tuesday, $37.2 million on Wednesday, $211.1 million on Thursday, and $170 million on Friday. Among the various funds, Fidelity’s FBTC suffered the most significant losses, contributing to a negative trend for three out of the four days.
In summary, during that period, Bitcoin ETFs based in the U.S. saw a withdrawal of approximately $706.1 million. Additionally, this marked the eighth straight day of losses, making it the longest such streak on record.
Except for the investment day on Monday, August 26th, which saw approximately $202.6 million flow into ETFs, every subsequent trading day has shown losses. In essence, this translates to a total outflow of nearly $900 million over the last two weeks.
Therefore, the total assets under management (AUM) have dropped below $50 billion for the first time since May, suggesting a strong possibility that exchange-traded fund (ETF) withdrawals could be contributing factors to Bitcoin’s 7% price decrease over the last week.
U.S BASED SPOT #BITCOIN ETF AT LOWEST LEVEL SINCE MAY 1.
Despite a downturn in the prices of numerous cryptocurrency tokens last week, only three out of the top 50 by market capitalization experienced gains. The value of U.S. Bitcoin and Ethereum exchange-traded funds reached all-time highs during this period.
— Karan Singh Arora (@thisisksa) September 8, 2024
ETH ETFs Lack Demand
Although the exchange-traded funds (ETFs) based on Bitcoin have highly volatile flows, it’s important to note that this volatility isn’t as prevalent in ETFs tied to Ethereum. The second-largest cryptocurrency hasn’t yet managed to attract significant investor interest and demand compared to its counterpart.
Yesterday marked a challenging day as I witnessed an outflow of approximately $47.4 million from Ethereum investment funds. The following day, another $37.5 million was withdrawn. Activity remained relatively low on Thursday and Friday, with minor outflows totaling around $0.2 million and $6 million respectively.
Keep in mind that no activity was recorded on Friday, contrasting with the 11 out of the past 13 trading days where outflows have been more frequent.
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2024-09-08 18:34