Bitcoin ETFs Hit by $77.97M Outflow Amid ETH ETFs Launch: A Bearish Trend Ahead?

On July 23, the cryptocurrency market experienced a significant shift as Bitcoin spot ETFs reported their first net outflow in over 12 days. As per crypto reporter Colin Wu, this totalled $77.97 million, marking a sharp contrast to the inflow trend observed recently. 

The major contributors to this outflow were Grayscale’s GBTC, Ark & 21Shares, and Bitwise, which saw respective withdrawals of $27.31 million, $52.29 million, and $70.32 million. This sudden outflow signals a potential bearish trend in the Bitcoin ETF market.

Despite this daily outflow, the long-term outlook for Bitcoin remains positive. The cumulative total net inflow for Bitcoin spot ETFs has reached $17.46 billion. This indicates a robust longer-term trend, even as the market faces short-term volatility. 

On July 23, the total value traded in these ETFs stood at $2.34 billion, representing 4.62% of Bitcoin’s market capitalization. The total net assets in these ETFs were valued at $59.97 billion.

In contrast to the Bitcoin ETF situation, July 23 also marked a notable event for the ether market. U.S. exchange-traded funds (ETFs) linked to Ethereum experienced a successful debut, with trading volumes reaching $1.07 billion. This debut is significant, as it highlights the growing acceptance and integration of digital assets into mainstream financial products.

The most active ether ETFs included Grayscale’s Ethereum Trust, with $450 million in turnover, iShares Ethereum Trust, at $245 million, and Fidelity Advantage Ether ETF, with $137 million. Other new entrants like Franklin Templeton, VanEck, and 21Shares also began trading, reflecting a broader expansion in the ether ETF market.

Although ether ETFs did not match the $4.6 billion traded in Bitcoin ETFs during their January debut, their introduction is still seen as a positive step for the cryptocurrency industry. The successful launch of these products is a testament to the industry’s ongoing efforts to establish cryptocurrencies as legitimate investment options.