Spot Bitcoin and Ethereum ETFs in the US turned negative after 9 days due to the escalation of Iran-Israel tensions. This trend reveals investor sentiment in the cryptocurrency market and their risk perception. As a result, there was a large outflow of money from spot ETFs, while the only company that invested in the fund during this period was the world's largest asset management company, BlackRock.

$242 Million Outflow from Spot Bitcoin ETFs

Geopolitical developments in recent weeks have created significant volatility in the cryptocurrency market. Investors’ risk aversion has increased, which has had a negative impact on spot Bitcoin ETFs.

The rising tension between Iran and Israel has led to a sharp decline in spot Bitcoin ETFs. Especially after 9 days of inflows, there was a total outflow of $242 million from the ETFs. This shows that investors are moving away from risky assets in an environment of uncertainty. However, as a notable development, BlackRock's spot Bitcoin ETF IBIT saw an inflow of $40 million during this difficult period.

On the other hand, significant money outflows were observed from ETFs of other large investment companies. For example, there was an outflow of $144 million from Fidelity spot ETF and $84 million from ARK Invest spot ETF. This situation shows that the customers of large investment companies are withdrawing by taking positions to avoid risk.

Spot Ethereum ETFs Also Exited

The outflows in spot Bitcoin ETFs were also seen in spot Ethereum ETFs in the US. According to the data, there was an outflow of $48.5 million from spot Ethereum ETFs. This outflow is an important indicator that reflects investors' confidence in cryptocurrencies, parallel to the movements in the market.

At the time of writing, the largest cryptocurrency, BTC, is trading at $61,545, down 3.64 percent in the last 24 hours. In the same time frame, the altcoin king, ETH, is trading at $2,474, down 6.32 percent in the last 24 hours.