Bitcoin ETFs Suffer $706 Million In Outflows – Should Investors Be Paranoid?

Bitcoin


Mainstream Bitcoin ETFs are having a bad time lately, as $706 million of outflows were recorded. This makes it one of the largest sets of withdrawals since May, showing growing unease among investors.

This has been driven by the fall in BTC price to its lowest since early August. The sentiment among investors is also changing drastically amidst uncertainty that pervades the market. Markets attribute this change in fortunes to seasonal trends and speculation of US rate cuts.

Huge Net Outflows

In the most recent data available, which is from September 6, net outflows from 12 spot Bitcoin ETFs hit a high of $170 million. Fidelity and Grayscale had been at the top, with Fidelity’s FBTC amassing close to $86 million in outflows on the day to mark its seventh consecutive session in negative flows.

In the meantime, grayscale’s GBTC suffered heavy losses, with almost $53 million in outflows. Since its creation, GBTC lost more than $20 billion. This fund, in just eight days, has witnessed a staggering outflow of $280 million and has been suffering from losses starting on August 27th in a row.

Ledger

Source: SoSoValue

Other notable outflows included Bitwise’s BITB, which lost over $14 million; ARK 21Shares’ ARKB had outflows of $7.2 million; Grayscale’s BTC Mini Trust lost almost $6 million, while Valkyrie’s BRRR fell by $4.5 million. These outflows point to a larger pattern underlined by declining investor confidence in Bitcoin ETFs during times of market volatility.

As of today, the market cap of cryptocurrencies stood at $1.91 trillion. Chart: TradingView.com

These have driven concern and made investors more risk-off. From a technical perspective, Bitcoin might also be creating a “death cross,” which would imply more price drop.

Analysts are divided on whether Bitcoin will break out from this slump or continue to fall, depending on how it intersects with key resistance and support levels.

The Ripple Effect On Ethereum

Not only Bitcoin is under the hot seat here. Additionally registering outflows of roughly $91 million were Ethereum ETFs. This figure reflects more negative attitude in the bitcoin market.

Lack of investor confidence is evident since many are changing their stance in view of current market developments.

Most interesting is the interplay between Bitcoin and Ethereum, because both assets have been, for quite a while, considered indicators of the crypto market’s general health.

Looking Ahead

It begs the question: where to now for Bitcoin and other cryptocurrencies? The environment is difficult at present, though some analysts feel this can be a good buying opportunity for the long-term investor.

The market volatility is nothing new; seasoned investors are aware of such downturns that are more often than not followed by significant recoveries. But for the investors wanting to get into the market at the moment, caution is advised.

The recent outflows from Bitcoin ETFs mark a critical juncture for the cryptocurrency market. Shaken investor confidence, combined with external economic factors, makes the next few weeks extremely important for deciding the future course of Bitcoin and Ethereum.

Featured image from StormGain, chart from TradingView



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

CryptoKorner
Bitbuy
CryptoKorner
Bitcoin
Ledger
undefined
Coinmama
Bitcoin Legend Max Keiser Predicts BTC to Hit $220K in 2025
Bitcoin
Bitcoin Hits New $112K High As Bears See $200M Liquidation
Opensea Acquires Rally to Enhance Mobile Experience and Token Trading Capabilities
Analysts Split on Whether Record Money Supply Will Boost Bitcoin
Bitcoin
bitcoin
ethereum
bnb
xrp
cardano
solana
dogecoin
polkadot
shiba-inu
dai
Free book
Blockfi
Bitcoin Legend Max Keiser Predicts BTC to Hit $220K in 2025
CoreWeave's $9B acquisition of Core Scientific sparks legal investigation
Bitcoin hits record $112K amid intensified US investor interest
Open vs. closed models: AI leaders from GM, Zoom and IBM weigh trade-offs for enterprise use
Akave Cloud Launches Decentralized Data Layer on Avalanche L1
Bitcoin Legend Max Keiser Predicts BTC to Hit $220K in 2025
CoreWeave's $9B acquisition of Core Scientific sparks legal investigation
Bitcoin hits record $112K amid intensified US investor interest
Open vs. closed models: AI leaders from GM, Zoom and IBM weigh trade-offs for enterprise use
ar
zh-CN
nl
en
fr
de
it
pt
ru
es
en
bitcoin
ethereum
tether
xrp
bnb
solana
usd-coin
dogecoin
tron
staked-ether
bitcoin
ethereum
tether
xrp
bnb
solana
usd-coin
dogecoin
tron
staked-ether