Exchange-traded funds (ETFs) pegged to Bitcoin (BTC) and Ethereum (ETH) are experiencing surging outflows, with direct consequences for the digital asset market.
On September 6, the BTC ETF saw a massive outflow of $170 million, bringing the total outflow for the week to $706 million. The Ethereum ETF is not safe either, as outflows exceeded $91 million during the same period.
Heightened market volatility and global economic uncertainty, such as expectations of rising interest rates, have forced even experienced investors to reconsider their positions. Bitcoin prices have fallen more than 5% in the past seven days, hovering around $55,000.
Bitcoin ETF loses $706 million
According to data shared by Sosovalue, Bitcoin ETFs have been in the red for 8 consecutive days. None of the 12 BTC ETFs achieved net inflows last week, and the funds experienced a net outflow of US$706 million in the past 7 trading days.
Fidelity ETF FBTC reported an outflow of $85.52 million on September 6, bringing its weekly outflow to $404 million. However, its cumulative inflows are still positive at $9.42 billion. Grayscale ETF GBTC reported an outflow of $52.87 million on September 6, bringing its weekly outflow to $160 million. Since its launch, the fund has had negative inflows of $20 billion.
High redemptions from Bitcoin ETFs have exacerbated selling pressure in the cryptocurrency market. BTC prices have fallen 5% over the past seven days, forcing it to revisit the $53,000 level. As of press time, the largest cryptocurrency is still up 29% year-to-date, trading at an average price of $54,830. Its 24-hour trading volume has increased by 16% to $21.5 billion.
ETH ETF faces $91 million in outflows
Ethereum ETFs also did not perform well. Data showed that these investment funds had a net outflow of $91.04 million last week. This is the fourth consecutive week that ETH ETFs have posted a red index.
Grayscale’s ETHE reported a massive outflow of $10.7 million on September 6, bringing the cumulative negative flow to $2.67 billion. BlackRock’s ETHA was the only ETH ETF to see an inflow of $4.72 million in the last trading day.
Ethereum is facing growing fear in the market. ETH price has fallen by more than 12% in the past 30 days. At press time, the second-largest cryptocurrency is trading at an average price of $2,288. The Dencun upgrade (March 2023) has not helped either. Its fee burn rate and transaction volume have fallen, exacerbating inflationary supply concerns.
