by Bitcoin and Ether ETFs Face Heavy Outflows Amid Market Reactions
In a surprising turn of events, both U.S.-listed spot crypto exchange-traded funds (ETFs) experienced substantial outflows on Tuesday, following last week’s surge in prices sparked by Republican candidate Donald Trump’s speech. This article delves into the details of the outflows and their implications for the crypto market.
Spot Bitcoin ETFs Suffer $18 Million in Outflows
Spot bitcoin ETFs recorded a notable $18 million in net outflows on Tuesday, breaking a four-day inflow streak that had peaked at $124 million. Grayscale’s IBIT led the outflows with a staggering $73 million. Other significant players such as Fidelity, Ark Invest, Bitwise, and VanEck also faced outflows ranging from $2 million to $7 million, according to data from SoSoValue. Interestingly, Blackrock’s IBIT was the only ETF that managed to record inflows, nearly hitting $75 million.
Ether ETFs Continue to Struggle
In another bleak development, ether-tracked ETFs reported nearly $100 million in net outflows on the same day, marking their fourth consecutive day of losses. Since the launch of these products on July 23, total assets under management have plummeted by nearly $1 billion. Grayscale’s ETHE has suffered the most, with losses amounting to $1.84 billion, while BlackRock’s ETHA leads in inflows with $618 million.
Market Reactions to Trump’s Speech
Last week, bitcoin prices surged past $69,000 as Trump took the stage at the Bitcoin 2024 conference in Nashville. During his speech, he unveiled plans to dismiss SEC head Gary Gensler and establish a strategic Bitcoin reserve if elected. However, the excitement quickly dissipated, with bitcoin losing as much as 5% on Monday following the U.S. Marshals Service’s transfer of $2 billion worth of BTC to two new wallets, raising concerns about a potential sell-off.
Caution Prevails Among Traders
As traders brace for further price volatility, upcoming earnings reports from major U.S. technology firms may play a significant role in influencing bitcoin prices. Firms like Apple, Amazon, and Meta are set to release their earnings this week, which historically impacts market trends. Singapore-based QCP Capital highlighted in a recent Telegram broadcast that “Election headlines will remain a major focus, but several key macroeconomic events are also on the horizon.”
Looking Ahead: A Range-Trading Outlook for BTC
With pivotal events such as the FOMC meeting on Wednesday and unemployment data scheduled for Friday, market analysts maintain a cautious outlook. QCP Capital stated, “We maintain a range-trading outlook for BTC,” emphasizing the need for traders to remain vigilant amidst fluctuating market conditions.
Conclusion
The recent developments in bitcoin and ether ETFs underscore the volatile nature of the cryptocurrency market. As the impact of political events and macroeconomic factors unfold, investors should stay informed and prepared for potential changes in market dynamics. For those interested in further exploring the world of cryptocurrencies, check out our insights on XRP and its price predictions.
