A recent downturn has affected the momentum of Bitcoin exchange-traded funds (ETFs) in the U.S. On Monday, these funds experienced net outflows totalling nearly $438 million, marking a significant reversal after a five-day streak of substantial inflows that had accumulated over $3 billion.
Several prominent ETF providers, including Bitwise, Grayscale, Fidelity, and Ark Investment Management, witnessed significant outflows during this period. However, BlackRock’s IBIT, the largest spot bitcoin ETF, continued to attract investments.
Despite this recent decline in inflows, bitcoin ETFs collectively hold over $102 billion in assets, representing a substantial portion of the bitcoin market.
In tandem with the ETF market, Bitcoin’s price has also experienced a slight downturn this week, retracing some of its recent gains. After reaching a peak near $100,000 last week, the cryptocurrency has dipped to around $94,500. Over the past 24 hours, Bitcoin has fallen 3.55% and is currently trading at $94,515.
In contrast to the mixed performance of Bitcoin ETFs, Ethereum ETFs saw modest inflows of $2.8 million on Monday. Three funds from Bitwise, Fidelity, and VanEck reported net inflows, while 21Shares’ fund and Grayscale’s two ETFs experienced net outflows.
The nine ether funds’ total trading volume expanded to $711.2 million yesterday, up from $373.9 million the previous Friday. Their cumulative flow total stands at $109 million.
As the cryptocurrency market continues to evolve, investors are closely monitoring these trends and assessing the potential impact on future investment strategies. The recent volatility in both Bitcoin and Ethereum ETFs highlights the inherent risks and rewards associated with investing in this nascent asset class.
Credit: TheBlock (Text Excluding Headline)