The latest data concerning the US ETF market discloses huge outflows from Ethereum and Bitcoin exchange-traded funds. As per Spot On Chain, a popular on-chain analytics company, the significant outflows from the $BTC and $ETH ETFs on September 11 signify a waning interest among investors. The analytics provider provided the details of the ETFs in its official social media account.
US #ETF 11 SEP: $44M to $BTC and $0.5M to $ETH BTC ETF UPDATE (final): -$44M• The net flow turned negative again after 2 days with inflows.• #BlackRock (IBIT) saw another $0 net flow. Overall, this major US BTC ETF has had non-positive flows for 11 consecutive… pic.twitter.com/DiFcdrPDdT
— Spot On Chain (@spotonchain) September 12, 2024
Bitcoin ETFs Witness Net Outflows of $44 Million after Inflows for Consecutive 2 Days
Spot On Chain noted that the Bitcoin ETFs went through a massive outflow of up to $44M. This large amount marks the reversal following a couple of days of witnessing positive inflows. Particularly, BlackRock’s IBIT (a well-known platform among the Bitcoin ETFs) witnessed no flows at all for another trading day. It reportedly continues an 11-day spell of non-positive or stagnant flows.
The respective trend raises several concerns for such a product as it once ignited substantial interest across the market. The inflow deficiency in the case of BlackRock points out the wider uncertainty and reluctance. Especially, institutional investors are refraining from investing in crypto at this time.
Ethereum ETFs Record $0.5 Million in Net Flows
In addition to this, the Ethereum ETFs are also facing similar conditions. In this respect, up to $0.5M has reportedly left the $ETH ETF sector. Although this figure appears relatively minor in comparison with Bitcoin, it lies in a bigger pattern of interest decline. Spot On Chain revealed that none of the $ETH ETFs in the US saw more than $2M in flow volume.
This indicates the present sloth in the market. Both Ethereum and Bitcoin are reportedly struggling to get traction. In line with the recent SpotOnChain statistics, it seems that institutional investors are facing reluctance and caution regarding crypto ETFs. Thus, due to them being tied to crypto assets like Ethereum and Bitcoin, their interest is decreasing just as is the case with the crypto market.
The inflow stagnation could be linked to diverse factors. They take into account macroeconomic conditions, regulatory concerns, and general market uncertainty. The exchange-traded funds have the potential to bridge between the digital assets and conventional finance. Even then, these financial products’ actual performance has been slightly underwhelming recently.
