Key Points
- Bitcoin ETFs experienced $804.8 million in outflows from 27th August to 4th September.
- North Korean hackers have been targeting cryptocurrency firms, impacting ETF stability and investor confidence.
September has been a challenging month for Bitcoin (BTC).
The digital currency has had difficulty surpassing the $60K threshold, and Bitcoin ETFs have encountered substantial issues.
Bitcoin ETFs Experience Significant Outflows
In the past few days, Bitcoin ETFs have seen outflows totaling $804.8 million, causing concern among investors and enthusiasts.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) has been particularly affected, with no inflows since 27th August.
This lack of activity on several days, including the 27th, 28th, and 30th of August and the 3rd of September, has added to market worries.
North Korean Hackers Targeting Crypto Firms
In the midst of these events, U.S. authorities have warned of an impending threat from North Korean hackers targeting crypto firms involved in the burgeoning Bitcoin ETF market.
North Korean hackers, notably the Lazarus Group, have a history of targeting cryptocurrency firms and platforms.
The FBI has disclosed that these cybercriminals are targeting employees at decentralized finance (DeFi) and cryptocurrency firms with sophisticated social engineering campaigns.
These warnings have led to concerns about the long-term sustainability of the Bitcoin ETF market as it faces both financial and cybersecurity challenges.
Despite these challenges, IBIT’s cumulative net inflows since its launch on 11th January are nearing $21 billion.
On 22nd July, IBIT had a significant inflow of half a billion dollars, the largest since 13th March, according to SpotOnChain data.
This fluctuation underscores the ETF’s changing appeal to investors, reflecting shifting market dynamics and sentiment.
In contrast, Ethereum (ETH) ETFs have consistently experienced outflows, with only brief periods of inflows.
From 27th August to 4th September, ETH ETFs recorded outflows on several days and saw zero inflows on others.
The only significant inflow happened on 28th August, when ETH ETFs saw a net inflow of $5.9 million, according to Farside Investors.
BlackRock’s Ethereum ETF has also primarily seen zero flows in recent weeks, mirroring the trend observed with BlackRock’s Bitcoin ETF.
Despite the recent turbulence, ETF analyst Eric Balchunas remains optimistic, anticipating brighter days ahead.
