Bitcoin ETFs See First Outflows in 12 Days Amid Ethereum ETF Launch
Bitcoin ETFs – On Tuesday, Bitcoin exchange-traded funds (ETFs) experienced a net outflow of $77 million, ending a 12-day streak of positive inflows, according to data from SoSoValue. This shift marked a notable change from the recent influxes seen in previous trading sessions.
Top Outflows from Leading Bitcoin ETFs
Bitwise’s BITB led the outflows with $70 million, followed by Ark’s ARKB with $52 million, and Grayscale’s GBTC with $27 million. Despite the overall trend, BlackRock’s IBIT was an exception, recording a net inflow of $72 million. This inflow pushed BlackRock’s net assets under management above $22 billion for the first time.
Ethereum ETFs Debut with Impressive Volume
The outflows from Bitcoin ETFs coincided with the launch of Ethereum (ETH) ETFs, which garnered $107 million in net inflows on their first trading day. The Ethereum ETFs saw a robust trading volume exceeding $1 billion, highlighting strong investor interest despite the ongoing Bitcoin ETF outflows.
Market Reaction and Price Stability
The recent Bitcoin ETF outflows followed two strong inflow days on Monday and Friday, during which more than $420 million flowed into the products each day. Despite the outflows, Bitcoin (BTC) prices remained relatively stable above $66,000, showing a modest decrease of just over 0.5% in the past 24 hours. The CoinDesk 20 (CD20), an index tracking the largest tokens excluding stablecoins, lost 0.6%.
Market Sentiment and Upcoming Influences
Traders and analysts expect the current subdued price action to persist until U.S. presidential candidates provide new commentary on cryptocurrency regulation. Alice Liu, Research Lead at CoinMarketCap, noted that the market is in a “wait and see” mode ahead of Trump’s upcoming speech at the Nashville Conference on July 25th. There is speculation that Trump may announce Bitcoin’s potential use in national reserves, which could trigger a significant rise in Bitcoin’s price.
Potential Market Impact from Political and Regulatory Developments
Singapore-based QCP Capital commented that prices might remain subdued until momentum builds ahead of the elections. The firm highlighted concerns over potential selling pressure from the U.S. government and Mt. Gox, which could impact market sentiment.
In summary, while Bitcoin ETFs saw a notable outflow, Ethereum ETFs made a strong debut. The market remains cautious, awaiting further developments in cryptocurrency regulation and political commentary that could influence future price movements.
Frequently Asked Questions (FAQ) About Bitcoin and Ethereum ETFs
Why did Bitcoin ETFs end a 12-day inflow streak?
Bitcoin ETFs ended a 12-day streak of net inflows on Tuesday, with investors withdrawing a net $77 million from U.S.-listed products. This outflow may be influenced by market anticipation regarding U.S. presidential candidates’ comments on cryptocurrency regulation.
How did Ethereum ETFs perform on their first trading day?
Ethereum ETFs had a strong debut, achieving $107 million in net inflows on their first trading day. The total trading volume for Ethereum ETFs reached $1.077 billion, indicating robust initial interest.
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