As the cryptocurrency market faces a broader downturn, Bitcoin exchange-traded funds (ETFs) are not escaping the prevailing trends. Recent reports from Farside Investors indicate that BTC ETFs experienced substantial outflows of $52.9 million on October 2, further highlighting the turbulent atmosphere surrounding digital assets.
Despite the overall market challenges, Eric Balchunas, a senior ETF analyst at Bloomberg, has spotlighted two Bitcoin ETFs that are standing out in this difficult landscape: BlackRock’s IBIT and Fidelity’s FBTC. Both funds have reached “stud level” status, each boasting over $10 billion in assets under management (AUM). This impressive performance underscores their resilience and ongoing appeal to investors even as others struggle.
According to Farside Investors, BlackRock’s IBIT has attracted an impressive $21.5 billion in total inflows since its launch, while Fidelity’s FBTC has drawn in $9.9 billion. This success sets them apart from other funds, which are lagging behind.
October, often referred to as “Uptober” after a typically declining September, has brought mixed results for these ETFs. On October 1, IBIT enjoyed inflows of $40.8 million, while FBTC faced outflows of $144.7 million. The following day, IBIT recorded outflows of $13.7 million, while FBTC rebounded with inflows of $21.1 million. These fluctuations illustrate the volatility and ever-shifting dynamics within the ETF market.
The performance of Ethereum (ETH) ETFs has also been disappointing. On October 1, cumulative outflows for ETH ETFs reached $48.6 million. BlackRock’s ETHA reported no inflows or outflows, while Fidelity’s FETH saw significant outflows of $25 million. The following day, ETHA struggled further, posting outflows of $18 million, while FETH managed to maintain a steady position with no flows recorded. This trend reflects the ongoing challenges facing Ethereum ETFs in the current market environment.
Amid these developments, a concerning observation emerged from social media regarding Grayscale’s GBTC, with one user questioning whether it could be deemed one of the worst-performing ETFs of the decade. This perspective is supported by Farside Investors, which reported that Grayscale’s GBTC has suffered a staggering total outflow of $20.1 billion since its launch. Similarly, Grayscale’s Ethereum ETF, ETHE, has faced outflows totaling $2.93 billion, exceeding the combined outflows of all other ETH ETFs.
On the price front, both Bitcoin and Ethereum are experiencing downward pressure. Bitcoin is currently trading at $60,480.03, reflecting a decline of 0.98% over the past 24 hours. Ethereum is faring worse, trading at $2,347.81, showing a more substantial dip of 4.35% in the same timeframe.
As the cryptocurrency market continues to navigate turbulent waters, Bitcoin ETFs like BlackRock’s IBIT and Fidelity’s FBTC demonstrate resilience amidst broader market declines. However, the struggles of Ethereum ETFs and concerns surrounding Grayscale’s offerings highlight the challenges that remain. Investors will be closely watching these trends as the market evolves.
October 2024, Cryptoniteuae