On Wednesday, U.S. spot bitcoin exchange-traded funds (ETFs) faced substantial net outflows totaling $43.97 million, halting a brief two-day streak of positive flows. This shift came amidst a backdrop of stronger-than-expected economic data and evolving market sentiments.
The largest outflows were reported by Ark Invest and 21Shares’ ARKB, which experienced a significant $54.03 million in net outflows, according to data from SoSoValue. Grayscale’s Bitcoin Trust (GBTC) followed with $4.59 million in net outflows, while its Bitcoin Mini Trust saw approximately $511,230 in outflows. Despite these declines, Fidelity’s FBTC led the day with $12.57 million in net inflows, and Invesco’s BTCO saw $2.59 million flow into the product. Meanwhile, other funds, including BlackRock’s IBIT, saw no daily flows, with IBIT not recording any net inflows since August 26.
The total daily trading volume for the 12 bitcoin ETFs reached $1.27 billion on Tuesday, a significant increase from $712.25 million the previous day. Since their inception in January, these funds have accumulated $17 billion in net inflows, underscoring their growing role in the cryptocurrency investment landscape.
Spot Ethereum ETFs in the U.S. encountered net outflows of about $542,870 on Wednesday. Out of nine funds, seven posted no daily flows. VanEck’s ETHV recorded net outflows of $1.71 million, while Fidelity’s FETH saw $1.17 million in inflows. The total daily trading volume for ether ETFs was $126.22 million, up from $102.87 million the day before. Cumulative net outflows for ether ETFs now stand at $562.06 million.
Bitcoin's price rose by 3.37% over the past 24 hours, reaching $58,318, while ether gained 1.78%, trading around $2,373, according to data from The Block. Rachael Lucas, a crypto analyst at BTCMarkets, attributed the outflows from bitcoin and Ethereum ETFs to the release of stronger U.S. economic data, noting that these fluctuations are a normal part of ETF evolution.
The recent U.S. consumer price index (CPI) report showed a 0.2% increase in consumer prices for August, marking a 12-month inflation rate of 2.5%, the lowest since February 2021, as reported by CNBC. This economic data has likely influenced investor behavior and ETF flows.
Looking ahead, investors are closely watching the upcoming Federal Open Market Committee (FOMC) meeting. The CME Group’s FedWatch Tool indicates an 85% probability that the Federal Reserve will lower interest rates by 25 basis points. Such a move could further impact market dynamics and investor sentiment.
The recent trends in bitcoin and ether ETF flows reflect a complex interplay of market forces and economic indicators. While outflows from these funds have been notable, they are part of a broader context of evolving economic data and investor expectations. As the market continues to react to economic developments and Federal Reserve signals, the performance and flows of cryptocurrency ETFs will remain a key area of focus for investors and analysts alike.
September 2024, Cryptoniteuae