Key Points
- Cryptocurrency investment products experienced $305M outflows between 24th and 31st August, with Bitcoin and Ethereum ETFs showing varied trends.
- Bitcoin and Ethereum prices have been rising, but they remain below expected levels after the ETF launch.
Crypto Investment Products Witness Significant Outflows
The global cryptocurrency market has been on the rise, with the market cap increasing by 2.79% and most coins gaining over 2% in the past 24 hours. However, weekly charts reveal a decline exceeding 5%.
A more alarming development is the substantial outflow from cryptocurrency investment products. A CoinShares report pointed out a total of $305 million outflows during the week of 24th to 31st August. This downturn follows net inflows of $543 million the previous week, affecting major asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares.
Bitcoin and Ethereum ETFs Show Mixed Trends
The report indicated that the negative sentiment was mainly centered on Bitcoin, witnessing $319m in outflows. Short Bitcoin investment products saw a second consecutive week of inflows totaling $4.4m. Meanwhile, Ethereum experienced $5.7m outflows, with trading volumes reaching only 15% of the levels seen during the US ETF launch week.
James Butterfill, CoinShares’ Head of Research, commented that the outflows were triggered by a pervasive negative sentiment across various regions and providers. This sentiment was stoked by strong economic data from the U.S., which lowered the chances of a 50-basis point interest rate reduction.
Recent data from Farside Investors confirmed a bearish trend in the Bitcoin (BTC) ETF market, marked by consistent outflows from 26th to 30th August. In contrast, Ethereum (ETH) ETFs have demonstrated more stability. Despite outflows of $12.6 million during the same period, ETH ETFs seem to be showing signs of a potential rebound.
Price Impact and Future Expectations
On the price front, both BTC and ETH have been on an upward trajectory, with green candlesticks appearing on the daily chart. In the past 24 hours, Bitcoin saw a rise of 2.22%, while Ethereum increased by 2.67%. Despite these gains, BTC and ETH were trading at $59K and $2.5K, respectively—below expectations after the ETF launch.
After the ETF launch, Bitcoin initially surged past $70K in March, reflecting a strong trend. However, Ethereum has struggled to break the $3K mark, falling short of the anticipated $4K level.
