As a seasoned researcher with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and trends. The recent developments in the Bitcoin ETF landscape have been intriguing, to say the least.
In the fourth quarter of 2024, Spot Bitcoin ETFs started off turbulently and ended the week with a net withdrawal of more than $300 million. This happened as Bitcoin itself began October on a downward trend, dropping by over 6% in just the first five days of the month.
Spot Bitcoin ETFs Negative Outflows End Three-Week Positive Streak
Based on information from market analysis tool SoSoValue, U.S. Bitcoin ETFs trading on the spot market experienced a total withdrawal of approximately $301.54 million during the initial week of the fourth quarter in 2024. This marked an end to a three-week streak where these ETFs had yielded positive returns.
After a significant inflow of $61.30 million on September 30, these investment funds shifted to a bearish position due to Bitcoin’s sudden drop in value, caused by increasing geopolitical conflicts in the Middle East. This resulted in three consecutive days with total outflows of $388.42 million.
On Friday, October 4th, I saw a positive shift in the trajectory of my BTC ETF investments, gaining approximately $25.59 million. However, these gains were relatively small compared to the initial losses, leaving me with a negative weekly performance. But, looking ahead to this quarter, the promising price forecasts for Bitcoin have me optimistic that my BTC ETF investments will continue to draw substantial interest.
Significantly, these investment funds have shown high-risk returns since their debut in January. As per analyst Quinten Francois’s data, Bitcoin spot ETFs hold the leading four spots among successful ETF launches in 2024. Given the potential increase in Bitcoin prices, there is likely to be increased attention from institutional investors towards these exchange-traded products over the next few weeks.
At the moment, Bitcoin ETFs such as BTC are experiencing a combined total inflow of approximately $18.5 billion, with their total assets valued at around $57.73 billion. This equates to 4.68% of the existing Bitcoin supply being held in these ETFs. As for market dominance, BlackRock’s IBIT leads the way with a staggering $22.91 billion invested. Grayscale’s GBTC and Fidelity’s FBTC also hold substantial portions of the market with net assets valued at $13.75 billion and $11.09 billion respectively.
Spot Ethereum ETFs Resume Weekly Negative Flows
Alongside the Spot Bitcoin ETFs, the US spot Ethereum ETFs also registered net weekly outflows of $30.69 million in the first week of Q4 2024, representing a return to a negative streak stretching from August 16.
Compared to Bitcoin ETFs, the Ethereum spot ETFs have faced a difficult start, experiencing a total outflow of approximately $553.66 million since their launch. Despite this, they represent 2.28% of the overall Ethereum market supply and hold a combined net asset value of around $6.6 billion.
Currently, as I’m typing this, Bitcoin is being traded at approximately $62,062, while Ethereum holds a value of around $2,414. There have been minimal changes in their prices over the last 24 hours.
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2024-10-06 11:46