Market Update: Bitcoin and Ethereum ETFs Experience Significant Volatility
Another week has passed, marked by notable volatility in the cryptocurrency market, with spot Bitcoin and Ethereum ETFs once again taking center stage.
Bitcoin ETFs Face Major Outflows
The previous week concluded on a particularly negative note, as spot Bitcoin ETFs recorded their worst day for inflows in approximately three months, witnessing nearly $240 million exit from the eleven funds. The start of the new week did not show much promise either, with $168.4 million withdrawn from the ETFs. Grayscale’s GBTC led the outflows with $69.1 million, closely followed by Ark Invest’s ARKB at $69 million and Fidelity’s FBTC at $58 million.
Tuesday continued the downward trend, experiencing $148.6 million in outflows. FBTC was the leader again, with $64.5 million withdrawn, while GBTC followed with $32.2 million. Interestingly, BlackRock’s IBIT saw no activity during these two days.
It wasn’t until Wednesday that IBIT recorded inflows of $52.5 million, which increased to $157.6 million on Thursday. These were the only two positive days of the week, with $45.1 million entering on Wednesday and $194.6 million on Thursday.
However, Friday brought back the outflows, totaling $89.7 million, with Grayscale accounting for the majority at $77 million. Overall, spot Bitcoin ETFs experienced a total outflow of $167 million for the week.
Amid these fluctuations, Bitcoin’s price fell below $50,000 during a market-wide downturn on Monday but rallied to surpass $60,000 by the week’s end, despite the ongoing outflows.
Ethereum ETFs Show Slight Improvement
Since their launch on July 23, spot Ethereum ETFs have struggled to attract significant investor interest. However, the past week showed a slight improvement.
Monday and Tuesday started positively, with inflows of $48.8 million and $98.4 million, respectively, the latter being the second-best day. BlackRock’s ETHA led these inflows, bringing in $47.1 million and $109.9 million.
Despite a shift in the trend as the week progressed, with investors pulling $23.7 million on Wednesday, $2.9 million on Thursday, and $15.8 million on Friday, the overall figures for the week remained positive. This marked the first week of positive flows for Ethereum ETFs, totaling nearly $105 million.
ETH’s price also dipped to $2,100 on Monday but rebounded in the following days, reaching $2,700 on Friday and just over $2,600 today.
