The post Bitcoin ETFs Hit Hard: $242.6 Million in Outflows as Tensions Rise appeared first on Coinpedia Fintech News
Bitcoin faced a significant fall yesterday and this fire did not even spare the ETF ecosystem. Bitcoin ETFs, yesterday recorded their largest outflow in a month. This broke the eight day inflow streak. This outflow coincided with the 6% drop in value of Bitcoin majorly due to rising war tension in the Middle East.
Who Experienced the Largest Withdrawals?
Fidelity’s FBTC faced the biggest outflow, with $144.67 million leaving the fund. Ark’s ARKB followed, suffering $84.35 million in withdrawals. In contrast, BlackRock’s IBIT ETF gained $40.84 million, the only ETF to record inflows.
Other funds also experienced significant losses. Bitwise’s BITB lost $32.7 million, while VanEck saw $15.75 million exit. Grayscale’s GBTC had $5.9 million withdrawn.
Ethereum Funds Also Struggled
Fidelity’s Ethereum Fund (FETH) experienced a record $25 million in outflows. This represented the highest daily withdrawal among US spot Ethereum ETFs. Collectively, Ethereum funds saw $48.6 million leave across nine issuers.
Ethereum ETF Flow (US$ million) – 2024-10-01TOTAL NET FLOW: -48.6ETHA: 0FETH: -25ETHW: -0.9CETH: 1.2ETHV: 2.7QETH: 0EZET: 0ETHE: -26.6ETH: 0For all the data & disclaimers visit:https://t.co/FppgUwAthD
— Farside Investors (@FarsideUK) October 2, 2024
Factors Behind the Bitcoin Decline
Bitcoin’s recent decline came after a 5% dip on October 1. After an attempt to recover, it fell another 5.9%, hitting $60,200. Market pressures caused panic selling among investors. Bitcoin struggled to maintain support above $65,500.
Two major non-market factors contributed to this crash. First, Jerome Powell stated that interest rate cuts are not imminent, which unsettled investors. Second, the conflict between Israel and Iran created global market unease.
What’s Next for Investors?
The current situation highlights how geopolitical tensions can impact the crypto market. Investors should be cautious as Bitcoin might test lower levels, potentially around $53,600. Keeping a close eye on market developments is essential for those involved in cryptocurrencies.
