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Sujit Kumar
Sep 5, 2024
by Sujit Kumar

Spot Bitcoin ETFs Face Consecutive Outflows Amid Market Uncertainty

Spot Bitcoin ETFs

Table of contents

  1. Looking Ahead
The recent trend in U.S. spot Bitcoin ETFs has taken a dramatic turn as investors have begun withdrawing funds after an initial period of strong inflows. For six consecutive days, these ETFs have experienced consistent outflows, with September 3 marking the worst day in terms of withdrawals since May 1. On that day, over $287 million was pulled from the largest Bitcoin ETFs, signaling growing investor caution.

Inflows Driven by Fed’s Interest Rate Promise

Earlier, the market saw a surge in inflows, particularly on August 23 and 26, when over $200 million was invested following remarks from Federal Reserve Chair Jerome Powell, suggesting an upcoming interest rate cut. However, this streak of eight days of inflows came to an abrupt end as outflows began, leading to more than $277 million leaving the financial products in just a few days.

Impact on Bitcoin’s Price

This period of negative sentiment coincided with a sharp drop in Bitcoin's price, falling from over $65,000 to around $57,000. BTC even hit a low of $55,600 on September 3, mirroring the broader market's hesitation towards the digital asset.

Ethereum ETFs Follow Suit

 

Meanwhile, Ethereum ETFs have seen similarly troubling outflows. On September 3 and 4, $47.4 million and $37.5 million, respectively, were withdrawn. Grayscale’s ETHE continues to lead this trend, with even the usually resilient BlackRock ETHA experiencing no inflows since late August. Only Fidelity’s FETH saw a small inflow of $4.9 million on Wednesday, further highlighting a cautious investment climate.

Looking Ahead

With both Bitcoin and Ethereum ETFs in the red, the market remains volatile, and investor sentiment could dictate further moves.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Spot Bitcoin ETFs
Spot Bitcoin ETFs Face Consecutive Outflows Amid Market Uncertainty
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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