As a seasoned crypto investor with a knack for deciphering market trends and understanding their nuances, I find myself both intrigued and slightly concerned by this recent development. The seven-day streak of net inflows into US spot Bitcoin ETFs was a promising sign, indicating growing institutional interest in the digital asset class. However, the sudden reversal to outflows on Tuesday is a stark reminder that the crypto market remains volatile and unpredictable, much like a roller coaster ride without safety harnesses!
Yesterday, there was a change in direction for U.S. Bitcoin exchange-traded funds (ETFs), with daily flows turning negative once again. This marks the end of a week-long streak during which these ETFs experienced net inflows. The shift occurred following seven consecutive trading days where investors invested substantial amounts into these financial products.
Based on information from SoSoValue, Bitcoin ETFs occupying the 12th position collectively experienced outflows totaling $79.09 million on Tuesday. The main cause of these withdrawals appears to be Ark and 21Shares’ ARKB, which recorded a combined exit of $134.74 million from their funds. This unexpected withdrawal stands in stark contrast to the steady inflows observed during the previous week.
Source: SoSoValue
Contrary to the general trend of outflows from ETFs, BlackRock’s IBIT, the largest Bitcoin ETF, actually recorded inflows amounting to $42.98 million. Fidelity’s FBTC and VanEck’s HODL also saw positive movements with inflows of $8.85 million and $3.82 million respectively. However, eight other funds, including Grayscale’s GBTC, did not report any significant changes for the day.
ETFs’ Cumulative Net Inflows Hit $21.15B
On Tuesday, there was a $79 million decrease in net investments (outflow), which brought the total accumulated net investments of the 12 ETFs down to approximately $21.15 billion. Furthermore, the daily trading volume for these ETFs dropped to around $1.4 billion from its previous level of $1.76 billion. This decline is observed after a timeframe where Bitcoin spot ETFs received over $2.67 billion in net investments during their seven-day inflow spree, which is comparable to the peak inflows they experienced in March.
During the given period, BlackRock’s IBIT significantly boosted investments with around $1.5 billion. This surge in funds occurred concurrently with Bitcoin’s price spike, reaching an impressive high of $69,300 on a Monday. The close correlation between ETF inflows and Bitcoin’s market fluctuations underscores the impact these financial instruments have on crypto markets.
Meanwhile, spot Ether ETFs in the US reported net inflows of $11.94 million on Tuesday, entirely driven by BlackRock’s ETHA. The other eight Ether funds showed no significant activity, maintaining a steady state amidst the fluctuating Bitcoin market.
The trade volume for today’s spot Ethereum ETFs was $118.4 million, which is a decrease from the $163.18 million recorded on Monday. Since they were first introduced, these ETFs have seen a total of $488.85 million in withdrawals.
Bitcoin Futures Hit $40.5 Billion OI Record
As a crypto investor, I’ve been closely watching the Bitcoin market, and it’s interesting to note that the future contracts for this digital gold have hit an all-time high of $40.5 billion in open interest (OI) on October 21, as reported by CoinGlass. Open interest gives us a sense of the market activity and investor engagement in Bitcoin derivatives. The Chicago Mercantile Exchange (CME) holds a significant share with approximately 30.7% of the total OI, while Binance comes in second with 20.4%, and Bybit follows closely at around 15%. This indicates a strong and growing interest in Bitcoin futures among major exchanges.
The price of Bitcoin decreased by 0.48% in the last 24 hours, reaching $66,620. Similarly, Ether experienced a 1.90% drop, ending at $2,580. These changes underscore the volatile nature of the cryptocurrency market, with the fluctuations being influenced by the varying flows of Exchange-Traded Funds (ETFs).
Read More
Sorry. No data so far.
2024-10-23 14:04