Bitcoin ETF Outflows Reach Three-Month High, Ethereum Funds Continue Losing Streak
Spot exchange-traded funds tracking bitcoin experienced their worst week for outflows since late June, contributing to a significant correction in the underlying asset’s price. While net outflows from spot Ethereum ETFs were somewhat less severe, the overall picture for ETH is more concerning due to a persistent lack of positive trading days.
The business week commenced unfavorably for the ETFs, with nearly $90 million in net outflows on Monday. Coincidentally, bitcoin’s price faced resistance at $87,000 and dropped by over $2,000 on the same day. A recovery in ETF flows on Tuesday, with investors injecting $118.86 million, saw the asset regain some ground.
However, the trend reversed sharply on Wednesday and Thursday, as net outflows surged to $487.07 million and $244.13 million, respectively. As anticipated, bitcoin experienced a substantial decline during these two days, culminating in a nosedive to a two-week low of $80,400 on Thursday.
Inflows returned on Friday, but they were modest, with only $21.13 million entering the funds. This was insufficient to offset the significant losses from the preceding two trading days. Consequently, the week concluded with $681.10 million in net outflows, the highest since the final full week of June, when investors withdrew $1.79 billion. The cumulative net inflows for bitcoin ETFs decreased from $57.79 billion to $57.11 billion.
Ethereum ETFs began the week with $50.76 million in net outflows. The pace of withdrawals accelerated on Tuesday, with $201.89 million leaving the funds, followed by $160.77 million on Wednesday. This streak of negative performance continued through the end of the week, with an additional $72.54 million withdrawn on Thursday and $56.10 million on Friday.
Compounding the issue, these five consecutive days of outflows followed a prior four-day losing streak. In fact, the Ethereum funds have not seen positive net inflows since September 28. During this period, the cumulative net totals have fallen from $13.95 billion to $13.26 billion.
The underlying asset, ether, had been trading above $2,700 for several weeks after being halted at $2,800. However, a mid-week downturn pushed the price down to $2,400. Since then, it has recovered some of its losses and is currently trading above $2,500.
