US Crypto ETFs Experience Significant Outflows Amid Price Declines

Investors are pulling funds from US cryptocurrency exchange-traded funds (ETFs) as both Bitcoin and Ethereum prices face significant declines. On October 20, 2023, Bitcoin ETFs experienced outflows of approximately $40.47 million, while Ethereum ETFs saw withdrawals totaling $145.68 million. The price of Bitcoin dropped to $107,759.93, a roughly 3.19% decline, and Ethereum fell to $3,887.54, marking a 4.55% drop over the same period.

Bitcoin ETF Performance

Bitcoin ETFs recorded a total outflow driven primarily by BlackRock’s IBIT, which alone accounted for $100.65 million of the withdrawals. Other ETFs, however, did manage to attract some inflows. VanEck HODL led with inflows of $21.16 million, followed by Bitwise BITB at $12.05 million, Invesco BTCO with $9.94 million, and Fidelity FBTC at $9.67 million. The smallest inflow of the day came from Grayscale BTC, which reported $7.36 million. Overall, the total trading value for Bitcoin ETFs plummeted to $4.87 billion, with net assets at $149.66 billion, representing 6.76% of Bitcoin’s market capitalization.

Ethereum ETF Analysis

Ethereum ETFs faced even steeper challenges, with total outflows reaching $145.68 million. The major contributor was again BlackRock, which saw $117.86 million in withdrawals, while Fidelity FETH reported $27.82 million. Notably, no inflows were recorded for Ethereum ETFs on that day, indicating persistent negative sentiment surrounding this asset. The total trading value for Ethereum ETFs was around $2.15 million, slightly lower than the previous week. The net assets stood at $26.83 billion, which is 5.56% of Ethereum’s market capitalization.

Market conditions reflect ongoing bearish trends, with both Bitcoin and Ethereum struggling amidst fluctuating investor confidence. As Bitcoin continues to decline, the market remains volatile, affecting trading volumes and overall sentiment toward cryptocurrencies.