In a notable shift within the cryptocurrency market, the 11 United States-based spot Bitcoin exchange-traded funds (ETFs) experienced net outflows of $1.2 billion over just eight days, marking their longest run of withdrawals since their inception. According to Bloomberg, between August 30 and September 6, investors pulled approximately $1.2 billion from these ETFs, which first launched on January 10.
This wave of outflows coincided with a significant downturn in Bitcoin prices, which saw a decrease from a high of $64,668 on August 26 to a low of $53,491 by September 7—a sharp 17.28% drop within two weeks. Analysts note that September historically records weaker performance for Bitcoin, often referred to colloquially as “Rektember” due to typically poor returns during the month. However, the term “Uptober” follows, suggesting a potential recovery in October.
Despite the recent market challenges, Bitcoin remains a focal point of interest. Financial advisor Suze Orman expressed a positive outlook on Bitcoin’s future in a CNBC interview, emphasizing the role of younger generations in driving its value. “As younger people make more money, BTC will be one of their investments of choice, and that will cause the asset’s price to go up,” Orman stated, indicating a bullish long-term perspective.
Meanwhile, despite recent outflows, cryptocurrencies continue to dominate new financial products. In 2024, crypto-based ETFs led the way among the 400 new ETFs launched, with the four largest being spot Bitcoin ETFs. These include notable offerings from BlackRock, Fidelity, ARK 21Shares, and Bitwise.
Further emphasizing the trend, out of the top 25 ETF launches by inflows, 13 were related to crypto, with 10 focusing on Bitcoin and three on Ethereum. Notably, the iShares Ethereum Trust ETF became the seventh-largest ETF launch in 2024, surpassing the $1 billion mark in August, underscoring the growing investor interest in both Bitcoin and Ethereum ETFs.
