In the volatile market of cryptocurrency, U.S.-based spot ETFs for Ethereum and Bitcoin witnessed contrasting movements of capital on October 2. As per Spot On Chain, a popular on-chain analytics provider, the divergent flows of Bitcoin and Ethereum highlight the current tug-of-war between the market trends and the investors. The analytics platform took to its official social media account to offer details about these flows.
Spot ETF: $92M to $BTC and $14.9M to $ETH Oct 02, 2024 The net flow for ETH ETFs rebounded strongly, even though the ETH price remains in the red. 4/5 major BTC ETFs experienced outflows yesterday, keeping the overall net flow heavily negative for the second… pic.twitter.com/qt0XUzcXMZ
— Spot On Chain (@spotonchain) October 3, 2024
Bitcoin ETFs Incur an Enormous Loss of $92M, Denoting a Downturn for 2nd Consecutive Day
In its recent X post, Spot On Chain noted that Bitcoin ETFs saw a substantial outflow of up to $92M, continuing a downward spree for the 2nd consecutive day. Keeping that in view, the Bitcoin ETF sector is going through a challenging time as 4 out of 5 prominent Bitcoin ETFs experienced outflows on the 2nd of October. The biggest outflow hit ARK 21Shares ($ARKB), which went through a massive loss of $60.3M.
Grayscale ($GBTC) followed it with an outflow of nearly $27.3M. Additionally, the $IBIT ETF of BlackRock and $BITB of Bitwise also losses, with $14M and $11.5M in outflows respectively. $FBTC of Fidelity emerged as the only Bitcoin ETF that recorded a positive flow although a modest one. It effectively added $21.1M. Irrespective of this, the general sentiment concerning $BTC ETFs has maintained a negative outlook. Investors are reacting to the wider market uncertainties.
Ethereum ETFs See Positive Flows With the Inclusion of $14.9M
On the other hand, $ETH ETFs had witnessed a relatively supportive outcome, with a cumulative inflow of almost $14.9M. BlackRock’s $ETHA made the most noteworthy contribution with an influx of approximately $18.5M. In addition to this, $1.8M flowed into Franklin’s $EZET. This indicates a rising interest in $ETH ETFs. Notably, the rest of the major players like Fidelity, 21Shares, and VanEck recorded no activity. Grayscale’s $ETHE added $5.4M.
Though Ethereum is struggling to recover its price from the recent dip, the current positive flows signify the confidence of investors in the long-term potential of $ETH. However, Bitcoin is currently going through more sudden headwinds, especially in the ETF sector. While the crypto industry keeps evolving, the divergent flows of $Ethereum and $Bitcoin are worth watching for the potential consequences.
