Bitcoin ETFs see $18.58M outflow, Ethereum funds follow suit

TLDR

Bitcoin ETFs saw net inflows of $18.58 million on October 8, 2024 Fidelity's FBTC at $48.82 million Blackrock IBIT bucked the trend with inflows of $39.65 million Ethereum ETFs also saw net inflows of $8.19 million or unstable Bitcoin prices impact behavior.

Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States experienced a combined outflow on October 8, 2024, reflecting continued market volatility and volatile cryptocurrency prices.

According to data from fund analysts and market watchers, the Spot Bitcoin ETF reported net inflows of $18.58 million, while Ethereum ETFs saw outflows of $8.19 million.

The Bitcoin ETF market showed a mixed performance, with some funds experiencing significant inflows while others attracted new investments. Fidelity's Wise Origin Bitcoin Fund (FBTC) invested $48.82 million. This significant exit contributed significantly to the overall negative trend for the day. Another major player, Greyscale's Bitcoin Trust (GBTC), also experienced a $9.41 million withdrawal.

However, BlackRock's iShares Bitcoin Trust (IBIT) stood out as the only fund to attract revenue on October 8. IBIT brought in $39.65 million, partially offsetting withdrawals from other funds and showing some investors are optimistic about Bitcoin's future. The remaining nine Bitcoin ETFs did not show any activity, which means that many investors are adopting a wait-and-see approach in the current market conditions.

In the face of Ethereum, ETFs mirrored the negative sentiment of the Bitcoin market. Bitwise's Ethereum ETF (ETHW) recorded the highest outflows at $4.54 million, followed by Fidelity's Ethereum Fund (FETH) with $3.65 million in outflows. The remaining seven positions Ethereum ETFs reported no inflows, indicating similar investor caution.

These joint exits come at a time when cryptocurrency prices are showing signs of instability. As of the reporting date, Bitcoin was trading at $62,405, representing a 0.12% decrease over the past 24 hours. Ethereum, on the other hand, showed a small gain of 0.48%, trading at $2,450.

Current market dynamics suggest that investors may be reassessing their exposure to digital assets or looking for alternative investment opportunities.

Volatility in Bitcoin prices appears to be a key factor influencing investor behavior, prompting some to reduce their holdings in crypto-related ETFs.

Bitcoin ETFs currently command $57.72 billion in net assets, representing 4.68% of Bitcoin's total market capitalization.

Ethereum ETFs hold $6.67 billion, which accounts for 2.27% of Ethereum's market value. These figures highlight the importance of these financial products to mainstream investors' exposure to the cryptocurrency market.

BlackRock's bitcoin and ethereum ETFs have performed strongly since inception, with combined earnings reaching $22.89 billion. This highlights the continued interest from institutional and retail investors towards cryptocurrency investments, despite the short-term ups and downs.