U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a notable setback on August 28, recording net outflows of $127.05 million. This marks a reversal from an eight-day streak of positive inflows, during which these funds had accumulated $756 million.
ARKB’s Record Outflow
ARK 21Shares’ ARKB ETF led the day’s outflows with a substantial $101.97 million in negative flow, setting a new record for the fund. This outflow is particularly significant given ARKB’s historical performance. Other notable outflows included Grayscale’s GBTC with $18.32 million and Bitwise’s BITB with $6.76 million. At the time of reporting, Valkyrie’s BRRR had not updated its data.
Market Context and Additional Developments
The broader market dynamics are also shifting, which may be influencing investor behavior. The Nasdaq has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to list Bitcoin Index Options. This new product will track Bitcoin’s price using the CME CF Bitcoin Real-Time Index, pending regulatory approval. It aims to enhance market transparency and provide investors with better tools for managing and hedging their crypto positions.
In addition, the CME Group is preparing to introduce smaller-sized Bitcoin futures contracts, which could attract retail investors.
At the time of writing, Bitcoin (BTC) was down 5.8% over the past 24 hours, trading at $59,160 according to data from Crypto.news.
Ethereum ETF Outflows
The Ethereum (ETH) ETF sector also experienced a significant decline in inflows. On August 28, the nine spot Ethereum ETFs collectively saw outflows of $3.45 million, marking the ninth consecutive day of negative flow. Grayscale’s ETHE was the primary contributor to these outflows, with $9.2 million leaving the fund, bringing its total outflows to $2.55 billion since its launch on July 23.
Conversely, Fidelity’s FETH and Bitwise’s ETHW were the only Ethereum ETFs to record inflows, with $3.9 million and $1.9 million, respectively. The remaining six ETH ETFs reported no flows. The total daily trading volume for Ethereum ETFs rose to $129.9 million on August 28, an increase from the previous day. Despite this, the cumulative net outflow for spot Ether ETFs stands at $481.32 million to date. Ethereum itself was down 8% at $2,463.
Conclusion
The recent wave of outflows from spot Bitcoin and Ethereum ETFs reflects broader market uncertainties and investor caution. With significant negative flows impacting major funds and the introduction of new market products, the landscape for Bitcoin and Ethereum investments continues to evolve.
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