BTC ETFs recorded second-largest outflows amid market-wide FUD

As a seasoned researcher with over two decades of experience in the financial markets, I have seen numerous ups and downs, booms and busts. Yet, the cryptocurrency market continues to amaze me with its resilience and volatility. The recent outflows from Bitcoin and Ethereum exchange-traded funds (ETFs) in the U.S., resulting in a 1% drop in BTC price and a 1.6% fall in ETH, are yet another testament to this fact.


On Monday, November 4th, United States-based Bitcoin exchange-traded funds experienced their second-largest total withdrawals.

Yesterday, as I was analyzing data from Farside Investors, I noticed that U.S.-based spot Bitcoin ETFs experienced a significant net outflow of approximately $541.1 million. This is the second-largest outflow since May 1st’s record-breaking $563.7 million withdrawal.

Here’s a quick recap of the outflows: 

  • Fidelity’s FBTC and ARK 21Shares’ ARKB recorded triple-digit outflows, worth $169.6 million and $138.3 million, respectively.
  • Outflows from both Grayscale funds, GBTC and BTC, were $89.5 million and $63.7 million, respectively. 
  • Bitwise’s BITB, Franklin Templeton’s EZBC and VanEck’s HODL funds registered $79.8 million, $17.6 million and $15.3 million in outflows, respectively.
  • Valkyrie’s BRRR ETF also saw $5.7 million in outflows.

Contrary to widespread apprehension and ambiguity, the BlackRock BITB fund experienced an inflow of approximately $38.4 million since the beginning. Since its inception in January, BITB has seen only five instances where money was withdrawn, with the largest withdrawal occurring six months ago, totaling $36.9 million – a period when investment products generally saw their highest withdrawals.

The dominating bearish sentiment could be due to the investors’ cautious approach to the U.S. presidential elections—scheduled for today.

For two days straight, ETF investments have decreased, leading to a 1% drop in Bitcoin’s value over the past 24 hours. Currently, it stands at approximately $68,300.

On Monday, there was a total withdrawal of approximately $63.2 million from U.S.-based Ether exchange-traded funds (ETFs), as per the statistics provided by Farside Investors.

ETH saw a 1.6% fall and is changing hands just above the $2,400 mark at the reporting time.

Over the past day, a significant drop in the value of the top two digital currencies has led to widespread fear, uncertainty, and doubt (FUD) throughout the crypto market. As per CoinGecko’s latest figures, the total market capitalization for cryptocurrencies dipped by 2.5%, amounting to a staggering $2.38 trillion—with approximately $33 billion being erased from the market value.

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2024-11-05 10:01