Investor sentiment surrounding cryptocurrency exchange-traded funds (ETFs) has soured significantly, resulting in substantial outflows from both Bitcoin and Ethereum ETFs. On October 20, 2023, Bitcoin ETFs experienced outflows totaling $40.47 million, while Ethereum ETFs faced withdrawals amounting to $145.68 million. This trend indicates heightened market volatility as prices drop for both leading cryptocurrencies.
Bitcoin ETF Performance
The outflows from Bitcoin ETFs were notably led by BlackRock’s IBIT, which saw a withdrawal of $100.65 million. Despite this, five other Bitcoin ETFs recorded small inflows: VanEck HODL with $21.16 million, Bitwise BITB at $12.05 million, Invesco BTCO with $9.94 million, and Fidelity FBTC at $9.67 million. The smallest inflow came from Grayscale BTC, which reported $7.36 million.
Overall, the total trading volume for Bitcoin ETFs fell to $4.87 billion, reflecting a sharp decline in market activity. The net assets for Bitcoin ETFs now stand at $149.66 billion, which represents 6.76% of Bitcoin’s market capitalization.
Trends in Ethereum ETFs
Similarly, Ethereum ETFs have seen a marked decrease in investor interest, with total outflows reaching $145.68 million. BlackRock ETHA accounted for a significant portion of these outflows, retreating by $117.86 million, while Fidelity FETH saw withdrawals of $27.82 million. No inflows were recorded for Ethereum ETFs on this day, signaling a prevailing negative sentiment among investors.
The total trading value for Ethereum ETFs reached $2.15 million, slightly lower than the previous week. The net assets of Ethereum ETFs are now at $26.83 billion, which corresponds to 5.56% of Ethereum’s market capitalization.
Market conditions have contributed significantly to this downturn. As of October 20, the price of Bitcoin has fallen to $107,759.93, marking a decline of approximately 3.19% over the previous day. Ethereum has also faced challenges, dropping to $3,887.54, which is a 4.55% decrease from the prior day. The overall market volatility has affected both cryptocurrencies, with Bitcoin reporting a 24-hour trading volume of $62.34 billion and Ethereum’s trading volume declining in tandem.
The current trend reflects a cautious outlook among investors, as both Bitcoin and Ethereum continue to grapple with market pressures. As the landscape evolves, stakeholders will be watching closely for signs of recovery or further decline in this critical segment of the financial market.
