ETFs for Bitcoin and Ethereum Suffer Major Withdrawals

Recent reports highlight a concerning trend in the U.S. regarding spot Bitcoin and Ethereum exchange-traded funds (ETFs), which have faced significant net outflows. On Thursday alone, net withdrawals amounted to $54.13 million for Bitcoin ETFs, contributing to a staggering total of over $388 million over the past three days. The ARKB fund from Ark Invest and 21Shares led the outflow with $57.97 million, while Fidelity’s FBTC fund experienced a $37.21 million withdrawal.

What is the status of Spot Bitcoin ETFs?

On the same day, the trading volume for spot Bitcoin ETFs dropped notably, recorded at $1.13 billion compared to $1.66 billion the previous day. BlackRock’s IBIT fund stood out with a net inflow of $35.96 million, alongside Bitwise’s BITB and Invesco’s BTCO funds, which saw minor inflows as well.

Are Spot Ethereum ETFs facing similar challenges?

Yes, spot Ethereum ETFs are also grappling with outflows. On Thursday, these ETFs saw a net withdrawal of $3.2 million, primarily driven by Grayscale’s ETHE fund with a notable $14.69 million outflow. However, BlackRock’s ETHA fund managed to mitigate some losses by recording a net inflow of $12.08 million.

• Spot Bitcoin ETFs experienced over $388 million in outflows in three days.
• BlackRock’s IBIT fund was the only one to show a significant inflow.
• Spot Ethereum ETFs also faced substantial withdrawals, totaling $561.05 million since July.
• Market volatility continues to affect investor confidence.

The notable withdrawals from both Bitcoin and Ethereum ETFs underscore ongoing investor uncertainty amid fluctuating market conditions. Despite some funds managing to attract new investments, the overall trend illustrates a cautious approach by investors in the current economic climate.