On October 1st, the U.S.-based Ethereum ($ETH) and Bitcoin ($BTC) ETFs went through their biggest outflows in almost a month. As per Spot On Chain, a popular on-chain analytics platform, the cumulative outflows reached a huge $242.6M from $BTC ETFs while $48.6M from $ETH ETFs, denoting a sheer decline that indicates renewed uncertainty in the market. The analytics provider offered insights into the latest ETF flows on its social media account.
Spot ETF: $242.6M to $BTC and $48.6M to $ETH Oct 01, 2024 Yesterday marked the largest net outflows for both BTC and ETH ETFs since September 3, following Iran's unprecedented direct attack on Israel, which caused the market to crash.Follow @spotonchain and check… pic.twitter.com/rlb3R70D62
— Spot On Chain (@spotonchain) October 2, 2024
US Spot ETFs See Massive Outflows Amid the Rising Conflict in the Middle East
Spot On Chain mentioned that this exclusion of funds from the ETFs comes after a period of increased geopolitical tensions. The recent direct Attack of Iran on Israel has caused substantial market volatility. This incident has sent shockwaves through the worldwide financial markets, taking into account the crypto sphere, which has experienced an abrupt pullback while investors focused on de-risking their portfolios. As per the reports, such an outflow has occurred after 8 days.
In the case of Bitcoin ETFs, Fidelity’s $FBTC fund saw the biggest outflows. The net redemptions of the exchange-traded fund reportedly reached $84.3M in total. The rest of the well-known Bitcoin ETFs additionally witnessed massive withdrawals, including BlackRock, Grayscale, Bitwise, and VanEck. BlackRock’s $IBIT beheld $40.8M in withdrawals. Additionally, Grayscale’s $GBTC incurred a loss of $5.9M. However, Bitwise’s $IBIT fund went through an outflow of $32.7M. The $HODL fund of VanEck additionally recorded a noteworthy exit of $15.8M.
Ethereum ETFs also experienced enormous withdrawals. $FETH of Fidelity led the rest of the Ethereum ETFs in terms of outflows. It saw a net outflow of $25M. Grayscale’s $ETHE ETF reportedly witnessed $26.6M in outflows. Subsequently, VanEck’s $ETHV incurred $2.7M in losses while BlackRock’s $ETHA went through a withdrawal of $1.2M.
Analyst Still Present an Optimistic Approach Regarding Long-Term Outlook
In line with the statistics from Spot On Chain, the sheer ETF outflows mirror the growing unease that institutional investors are facing while wider market risks rise. Geopolitical conflicts, especially in the Middle East, have ignited this sudden shift in market sentiment. As a result, several investors are extracting their funds from riskier assets like cryptocurrencies. Despite these outflows, some analysts still show cautious optimism concerning the long-term outlook.
