As a seasoned researcher with a keen eye for market trends and geopolitical influences, I find myself observing the crypto market’s response to global events with growing fascination. The recent outflows from Bitcoin and Ether exchange-traded funds (ETFs) are a testament to the interconnectedness of financial markets and global politics.
As an analyst, I observed a notable withdrawal of assets from Bitcoin exchange-traded funds (ETFs) yesterday, marking the end of an impressive eight-day inflow streak. This shift came about as the price of Bitcoin dipped below $62,000, coinciding with escalating tensions in the Middle East.
Based on SoSoValue’s statistics, there were net withdrawals of approximately $242.53 million from the Bitcoin ETFs with 12 spots, ending a run of inflows that had totaled $1.42 billion over the past eight days. This was the largest single-day withdrawal since September 3, when Bitcoin ETFs experienced outflows worth $288 million.
On October 1st, Fidelity’s FBTC fund had the most withdrawals among all funds at $144.7 million, followed closely by ARK 21Shares’ ARKB with $84.3 million in outflows. Bitwise’s BITB and VanEck’s HODL also experienced significant outflows, amounting to $32.7 million and $15.8 million respectively. Grayscale’s Bitcoin Trust saw a more minimal decrease of $5.9 million during this period.
The remaining spot Bitcoin ETFs recorded no outflows on the day.
Despite the outflows, trading volume across the 12 Bitcoin ETFs surged, reaching $2.53 billion on Oct. 1. Since their launch, these funds have attracted a cumulative total of $18.62 billion in net inflows, highlighting sustained interest despite recent volatility.
Bitcoin ETFs experienced significant drops linked closely with global political incidents. For instance, when reports emerged about Iran’s missile attacks on Israel, the price of Bitcoin dropped by more than 3.7%, equating to a loss of roughly $4,000 within a day. At its lowest point during this period, the cryptocurrency reached approximately $60,315 before recovering slightly to around $61,500 at the time of this writing.
The drop in Bitcoin’s value was accompanied by a change in market opinion, as seen in the Crypto Fear and Greed Index. This index, which measures investor sentiment, fell from a neutral score of 50 to a level indicating fear at 42, suggesting that investors are growing more cautious due to increasing geopolitical risks.
Spot Ether ETFs also see outflows
On October 1st, there were withdrawals totaling $48.52 million from U.S.-based Ether Exchange Traded Funds (ETFs). The largest outflow came from Grayscale’s Ethereum Trust, with $26.6 million withdrawn, followed by Fidelity’s Ethereum Trust, which saw $25 million in withdrawals.
As a crypto investor, I noticed that Bitwise’s ETHW saw relatively smaller outflows amounting to $895.65K yesterday. However, the rest of the Ether ETFs maintained a balanced stance, remaining neutral throughout the day.
On October 1st, the trading volume for Ether Exchange-Traded Funds (ETFs) escalated to a significant $290 million, marking an increase from the previous day’s figure of $147.9 million. Since their debut, these investment products have shown net outflows amounting to a total of $572.31 million.
At the point when it was released, Ethereum (ETH) had dropped by around 6.3%. Its value was roughly $2,474 during trading, reflecting a persistent challenge in the broader cryptocurrency market due to geopolitical issues and uncertainties among investors.
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2024-10-02 10:02