The past week was tumultuous for the spot Bitcoin ETFs, with massive outflows totaling $167 million. This negative trend was evident throughout the week, with only two days of inflows amounting to $45.1 million on Wednesday and $194.6 million on Thursday. Grayscale’s GBTC saw the most significant outflows of $77 million, followed by Ark Invest’s ARKB and Fidelity’s FBTC. These outflows came at a time when Bitcoin’s price experienced significant volatility, dropping below $50,000 at the beginning of the week but recovering above $60,000 by the end.
Ethereum ETF Flows:
In contrast to the Bitcoin ETFs, the spot Ethereum ETFs experienced a more positive week in terms of flows. The total inflows for the week amounted to almost $105 million, marking the first week of positive flows since the ETFs were launched on July 23. BlackRock’s ETHA led the pack with significant inflows on Monday and Tuesday, while the rest of the week saw minor outflows. Despite the price of Ethereum dropping to $2,100 on Monday, it quickly recovered to above $2,600 by the end of the week.
The data from the past week’s ETF flows reveal a mixed picture for both Bitcoin and Ethereum. While Bitcoin saw significant outflows and price volatility, Ethereum experienced a more positive trend with inflows outweighing outflows for the first time. This divergence in investor sentiment towards the two largest cryptocurrencies reflects the ongoing uncertainty in the market and the differing investment strategies by institutional and retail investors.
The significant outflows from Bitcoin ETFs suggest a degree of bearish sentiment among investors, despite the price recovery towards the end of the week. On the other hand, the positive flows into Ethereum ETFs indicate growing interest in the second-largest cryptocurrency and potentially signal a shift in investor preferences. The overall impact of these trends on the broader market remains to be seen, as market participants continue to navigate the volatile crypto landscape.
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