As an analyst with over two decades of experience in the financial markets, I find these recent trends in Bitcoin and Ethereum ETFs intriguing. The outflows from spot Bitcoin ETFs, despite the overall dip in the broader cryptocurrency market, suggest that institutional investors might be more bullish on Bitcoin than other digital assets. This trend aligns with my observations of the increased interest in Bitcoin among traditional financial institutions over the past few years.
On October 9th, United States Bitcoin exchange-traded funds experienced a second straight day of withdrawals, totaling approximately $30.59 million in assets being withdrawn from these funds.
Based on information from SoSoValue, Bitcoin ETFs managed by SoSoValue have experienced a second straight day of outflows totaling approximately $30.59 million. All of these withdrawals originated from ARK 21Shares’ ARKB fund, which saw a withdrawal of about $44.47 million, marking the second consecutive day of negative trends for this fund.
On that particular day, BlackRock’s IBIT registered inflows worth $13.88 million, making it the second consecutive day with inflows. Over these two days, a total of $137.5 million has flowed into the fund. It is important to note that since its launch, IBIT – the largest ETF by net assets – has attracted a net inflow of approximately $21.71 million.
At the moment I’m writing this, the data for Bitwise’s BITB hasn’t been updated. However, the other nine Bitcoin ETFs showed no significant change during the day. To date, these U.S.-based Bitcoin ETFs have collectively attracted a net investment of $18.68 billion since they were first launched.
Although Bitcoin ETF applications showed a mix of results on October 9th, the overall cryptocurrency market experienced difficulty. Initially trading above $62,000, Bitcoin (BTC) soon dipped to a daily low of $60,541, heightening worries about its ongoing volatility.
Due to a drop in price, approximately $40 million worth of Bitcoin long positions were liquidated, which added to the negative feelings about the market. In the cryptocurrency industry as a whole, there were liquidations of both long and short positions amounting to $162.22 million over the past 24 hours, according to CoinGlass data. At the time of reporting, Bitcoin was declining by 2.2%, trading at $61,031.
Spot Ether ETFs see no activity
Unlike Bitcoin, there was a tranquil day for Ethereum Spot ETFs. According to data from SoSoValue, these nine Ethereum ETFs in the U.S. had no inflows on October 9th, following outflows of $8.19 million on the preceding trading day.
At the point of this update, Ethereum (ETH) experienced a decrease of 1.8%, lowering its price to $2,402, due to investors adopting a cautious stance as the overall crypto market dipped by 3.3%. At that time, the global crypto market was valued at approximately $2.23 trillion.
Contrary to the increasing inflow of Bitcoin ETFs, there’s been continuous outflow for Ethereum ETFs, indicating a contrasting pattern in market preference or demand.
According to CryptoQuant, after 79 days of trading, Ethereum ETFs have experienced a total outflow of $4.1 billion, while Bitcoin ETFs have seen inflows worth $29.1 billion. This significant difference indicates that investors and institutions might be showing a stronger preference for Bitcoin over Ethereum in the present market conditions, hinting at a potentially more favorable sentiment towards Bitcoin.
After seven-and-a-half weeks of exchange-traded fund (ETF) trading, the Bitcoin ETF has seen a surge in investments amounting to $29.1 billion, while the Ethereum ETF has experienced outflows totaling $4.1 billion.
— CryptoQuant.com (@cryptoquant_com) October 10, 2024
Matt Hougan, Bitwise CIO, explains that the sluggish beginning of spot Ethereum ETFs is largely because traditional investors were still adjusting to the crypto market when these products debuted. He thinks the timing may have been premature, but anticipates that Ethereum ETFs will gather pace, possibly amassing $20 billion in assets within a year as interest increases.
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2024-10-10 10:48