As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and trends. The recent developments in the Bitcoin and Ethereum ETFs are a testament to the volatile nature of the cryptocurrency market, which continues to captivate investors worldwide.
In the United States, there was a notable increase in inflows for Bitcoin-based exchange-traded funds, while the outflows for Ether-based ETFs have become more moderate.
Based on figures provided by SoSoValue, Bitcoin ETFs holding the 12th position experienced an outflow of approximately $211.15 million on September 5, marking a significant increase of over six times more than the $37.29 million outflows reported the day before.
In a notable turn of events, Fidelity’s FBTC fund led the way in withdrawals, totaling approximately $149.5 million. Biwise’s BITB, Grayscale’s GBTC, and the Grayscale Bitcoin Mini Trust followed suit, reporting outflows of around $30 million, $23.2 million, and $8.4 million respectively.
Significantly, Fidelity’s FBTC experienced the most significant withdrawals in the past week, totaling $374 million, exceeding the $227 million withdrawn from Grayscale’s GBTC.
Despite having a staggering $20.91 billion in accumulated investments, BlackRock’s IBIT Bitcoin fund maintained a neutral stance today, just like the other eight Bitcoin ETFs that followed suit.
On September 5th, the combined daily trading volume for the 12 Bitcoin ETFs decreased to approximately $1.35 billion, a drop from $1.41 billion the day prior. At the time of this writing, Bitcoin (BTC) had declined by 0.9% over the last 24 hours, with its current price being around $56,327, as reported by crypto.news.
The price decrease of Bitcoin can be attributed to a growing sense of apprehension within the cryptocurrency market. Notably, the crypto fear and greed index has dipped into the ‘extreme fear’ zone at 22, which is its lowest point in over a month, according to Alternative data. This anxiousness seems to stem from ongoing worries about the possibility of an upcoming U.S. economic recession, fueled by a series of disappointing economic indicators.
Moreover, the institutional interest in Bitcoin appears to be decreasing, as there have been seven straight days of outflows from spot Bitcoin ETFs, totaling more than $1 billion since August 27th.
On August 5, despite a bearish trend, nine spot Ether Exchange Traded Funds (ETFs) experienced relatively minor net outflows of approximately $152,720, as reported by SoSoValue. In contrast, Grayscale’s ETHE witnessed outflows amounting to $7.4 million, while the Grayscale Ethereum Mini Trust saw nearly equal inflows of around $7.2 million.
The remaining seven spot ETH funds saw no activity on the day.
On September 5th, the cumulative trading volume for the nine Ether Exchange-Traded Funds decreased to approximately $108.59 million from $145.86 million on September 4th. At the time of this writing, Ethereum’s (ETH) price had dropped by about 0.9%, with transactions occurring at around $2,378 per unit.
The Fear and Greed Index associated with Ethereum has decreased, settling at 34, indicating a surge in apprehension and conservative investment attitudes amongst market participants, suggesting increased uncertainty.
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2024-09-06 10:20