The latest data draws a concerning picture in the case of crypto ETFs, specifically Ethereum and Bitcoin. Spot On Chain, a famous on-chain analytics firm, mentioned that the US-based $BTC and $ETH ETFs have gone through huge outflows, pointing toward a likely investor discomfort or profit-taking strategy amid the uncertainty in the market. The analytics platform provided the details on its official social media account on X.
US #ETF 03 SEP: $288M to $BTC and $47M to $ETH BTC ETF UPDATE (final): -$288M• The net flow has remained strongly negative over the past 5 trading days.• No US Bitcoin ETFs have seen an inflow for the second day.• Specifically, #Fidelity (FBTC) saw a massive… pic.twitter.com/T4YRTpO4UF
— Spot On Chain (@spotonchain) September 4, 2024
Enormous Outflows from $BTC ETFs See $288M Leaving the Market
Spot On Chain noted that the Bitcoin ETFs have witnessed massive outflows of $288M over the last 5 trading days. The respective trend signifies a continuous negative sentiment that the investors are expressing. They have reportedly been steadily redeeming funds from ETFs. Importantly, the 3rd of September marked the 2nd day showing no inflows at all in the US $BTC ETFs. This further increases the apprehensions about the market’s present state.
One of the noteworthy developments related to this trend takes into account the outflow that Fidelity’s Bitcoin ETF saw. In this respect, a significant amount of $162.3M left the exchange-traded fund within one day. This emerges as the biggest outflow for Fidelity’s Bitcoin ETFs during the recent twenty-one trading days. This indicates a severe shift in the sentiment of investors.
$ETH ETFs See the Withdrawal of $47M, Indicating a Declining Investor Confidence
Such an enormous withdrawal denotes the investors’ potential relocation of portfolios. The potential reason behind this includes the wider market apprehensions or prediction of provisional price volatility for Bitcoin. Similarly, Ethereum ETFs are also facing a bleak situation. On the 3rd of this month, the US $ETH ETFs beheld $47M in outflow.
Grayscale’s Ethereum Trust specifically witnessed a hard hit with an outflow of almost $52.3 million. This is the highest withdrawal level in the last twenty-one trading days. The respective development symbolizes an increasing investor unease across the Ethereum market. The rest of the Ethereum ETFs additionally recorded low flow volumes.
This highlights a wider trend of plunging investor confidence or interest in the financial products concerning Ethereum. According to Spot On Chain, this could be a result of diverse factors, taking into account $ETH price fluctuations. They also include macroeconomic factors impacting investor behavior and the wider crypto market.
