The US ETF market witnessed another outflow round on September 4th as both the Bitcoin and Ethereum ETFs recorded negative flows. As per the data that the on-chain analytics firm Spot On Chain provided, a cumulative $37M left the $BTC ETFs while the $ETH ETFs witnessed $38M in outflows, denoting an increased caution among the crypto investors. The crypto analytics firm disclosed the details of these ETFs on its official social media account.
Bitcoin ETFs See Further Outflows of $37M, with GBTC Accounting for a Staggering $34.2M
Spot On Chain noted that Bitcoin exchange-traded funds have now seen negative flows for 6 trading days consecutively. This reportedly signifies a continuous trend of capital outflowing from the market. Grayscale’s Bitcoin ETF (GBTC) again dominated the $BTC ETF outflows with $34.2M. Subsequently, VanEck (HODL) and Fidelity saw $4.9M and $7.6M in outflows respectively. On the other hand, Bitwise turned out to be the only $BTC ETF recording inflows by adding $9.5M.
Overall, this prolonged time of outflows highlights the current uncertainty regarding the price performance of Bitcoin. Additionally, the investors are potentially responding to a recent spike in volatility along with other factors like regulatory uncertainty and inflation. $37M in net outflow from $BTC ETFs denotes a bearish investment sentiment.
Continued Outflows of $38M from Ethereum ETFs Indicate a Downturn in Investor Confidence
Ethereum ETFs went through an analogous downturn, with a cumulative $38M leaving the market on September 3rd. The $ETH ETFs have been seeing a substantially negative net flow for a recent couple of trading days. This points toward a wider trend of capital exiting the Ethereum-focused funds. Grayscale’s Ethereum ETF (ETHE) emerged as the single Ethereum ETF with a net outflow.
Its net outflow of $40.6M outweighed the $3.1M inflow of Grayscale Mini (ETH). The rest of the 7 $ETH ETFs witnessed no flows at all. The outflow pattern, especially in the case of Grayscale, has ignited several apprehensions among investors who keenly observe the price movements of Ethereum. The wider crypto sphere has gone through a massive influence from the regulatory developments.
Moreover, the transition of Ethereum to the proof-of-stake consensus mechanism has also taken huge attention in the ongoing discussions. As Spot On Chain implies, while the crypto sector keeps on facing a challenging macroeconomic scenario, both Ethereum and Bitcoin ETFs are expressing great caution, with enormous outflows minimizing investor confidence.
