Bitcoin and Ethereum ETFs Extend Outflows as Crypto Prices Slide
Almost everyone expected the exchange-traded funds that reflect the underlying asset’s performance to lose money during the week it fell from over $84,000 to under $80,000, the monthly low. That is correct. The Ethereum exchange-traded funds followed a similar pattern, maintaining their downward trend even after a single day of gains. In recent weeks, the spot Bitcoin ETFs have grown tightly linked to the price volatility of BTC. When there are large net inflows, like the $2.4 billion that investors put into the funds in five trading days at the end of September, the price of the cryptocurrency goes up a lot. The first two weeks of October were bearish for Bitcoin, on the other hand.
After a rejection at $87,000 caused a loss of several thousand dollars, the ETFs saw net outflows topping $680 million, as reported last weekend. It tried to recover in the days that followed, reaching $84,000 on many times before being rejected again. For the first time in almost a month, the bears pushed the price down to slightly under $80,000 as they increased their position. It should be noted that this happened during a week when ETF flows were negative. In comparison to the previous week, the net outflow of $228.58 million was an improvement for the funds. The week’s net inflow was $175.62 million on Tuesday, following a loss of $65.40 million on Monday.
On Wednesday, though, it lost $261.46 million, putting it back into negative territory. Thursday saw a small increase of $5.06 million, while Friday saw a loss of $82.39 million, bringing the week to a negative close. From October 2 to October 16, the overall net cumulative inflows into the funds fell from almost $57.8 billion to $56.88 billion. Even if there was a net withdrawal of over $230 million from Bitcoin ETFs last week, the environment is not quite as bleak as it is for Ethereum ETFs. Since September 28, the funds that follow the top altcoin have only had one day of positive performance. A total of $24.84 million was distributed to investors on October 13.
On the other hand, the rest of the week followed a different pattern, with net outflows of $85.40 million on Monday, $129.51 million on Wednesday, $60.22 million on Thursday, and $69.68 million on Friday. This week’s net outflows of over $320 million surpassed the spot BTC ETFs in that negative rating. The Ethereum ETFs have fallen for three weeks in a row, losing a total of $1 billion in that period. Last week, the price of the underlying asset fell sharply, dipping below $2,300 for the first time since the breakout rally in August.
