US Crypto ETFs Experience Significant Outflows as Prices Decline

Investors are withdrawing significant amounts from US cryptocurrency exchange-traded funds (ETFs) as prices for both Bitcoin and Ethereum continue to decline. On October 20, 2023, Bitcoin ETFs saw outflows totaling $40.47 million, while Ethereum ETFs experienced withdrawals of $145.68 million. The price of Bitcoin dropped to $107,759.93, marking a decrease of approximately 3.19%, while Ethereum’s price fell to $3,887.54, equivalent to a 4.55% decline.

Bitcoin ETF Analysis

The outflows from Bitcoin ETFs were primarily driven by BlackRock’s iShares Bitcoin Trust, which accounted for a substantial $100.65 million of the total withdrawals. Despite this, several ETFs reported small inflows during the same period. Notable among these were VanEck HODL, which attracted $21.16 million, and Bitwise BITB, pulling in $12.05 million. Other ETFs, including Invesco BTCO and Fidelity FBTC, also saw modest inflows of $9.94 million and $9.67 million, respectively. Grayscale BTC recorded the smallest inflow of the day at $7.36 million. Overall, the total trading value for Bitcoin ETFs dropped to $4.87 billion, which is reflective of the broader bearish market trend.

Currently, the net assets for Bitcoin ETFs stand at $149.66 billion, representing 6.76% of Bitcoin’s total market capitalization.

Ethereum ETF Overview

Ethereum ETFs faced even greater challenges, with total outflows of $145.68 million recorded on the same day. BlackRock’s ETHA led the way with a withdrawal of $117.86 million, while Fidelity’s FETH saw outflows of $27.82 million. No inflows were noted for Ethereum ETFs, indicating a persistently negative sentiment surrounding the cryptocurrency.

The trading value for Ethereum ETFs reached $2.15 million, a slight decrease compared to the previous week. The total net assets for Ethereum ETFs are now $26.83 billion, which comprises 5.56% of Ethereum’s market capitalization.

The ongoing declines in both Bitcoin and Ethereum prices indicate a challenging environment for cryptocurrency investors. Bitcoin’s trading volume reached $62.34 billion over the last 24 hours, while Ethereum’s activity also showed signs of tapering off. As the crypto market grapples with these shifts, investor sentiment remains cautious, and the future of cryptocurrency ETFs will depend on market recovery and renewed confidence among investors.