The US crypto ETF sector experienced significant outflows on August 27. Spot On Chain, a prominent on-chain analytics provider, revealed that the Bitcoin ETFs witnessed $127M in outflows while $3.4M left the Ethereum ETFs on the same day. The on-chain analytics platform took to its official X account to offer insights into the present market scenario surrounding ETFs.
US Bitcoin and Ethereum ETFs Witness Massive Outflows of $127M and $3.4M Respectively
In its exclusive X post, Spot On Chain shared the list of the flows in the ETFs. In line with the data, the Bitcoin ETFs have experienced a massive decline with no inflows at all. In this respect, a cumulative $127M amount has left the Bitcoin ETF sector. A significant contributor to this downturn was ARK 21Shares ($ARKB) with a staggering $102M amount in outflows. Following that, Grayscale ($GBTC) saw an outflow of nearly $18.3M.
Additionally, Bitwise ($BITB) witnessed $6.8M in net outflows. These outflows have signified the end of an 8-day inflow streak of Bitcoin ETFs. On the other hand, Ethereum ETFs witnessed a significantly lesser amount of outflows in comparison with Bitcoin. Fidelity ($FETH) and Bitwise ($ETHW) reportedly recorded 3.9M and $1.9M in inflows. However, the $9.2M in the outflow of Grayscale ($ETHE) resulted in an overall $3.4M in net outflows from ETH ETFs.
These flows mark the 9th consecutive day in terms of ETH ETF outflows. As a result of the respective enormous outflows the prices of these assets have also experienced a substantial downturn. Ethereum has reportedly seen a nine percent price dip following a selling spree. This took place following the consistent outflows from the Ethereum ETFs.
The Staggering ETF Outflows Lead to Price Downturn and Increased Selling Pressure
These outflows from Ethereum and Bitcoin ETFs point toward a likely shift in the sentiment of the crypto investors. Although the long-term outlook for ETH and BTC stays strong, the current short-term movements indicate a relatively increased caution among investors. Hence, an increase has occurred in the selling pressure on both the Bitcoin and ETH investors and may lead to a further downturn.
Source: https://blockchainreporter.net/us-bitcoin-and-ethereum-etfs-suffer-130m-in-combined-outflows/