On Tuesday, U.S.-listed spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) experienced notable outflows as cryptocurrency prices retraced gains from last week’s surge, spurred by Republican candidate Donald Trump’s speech. Spot Bitcoin ETFs saw $18 million in net outflows, breaking a four-day inflow streak that had peaked at $124 million.
Leading the outflows was Grayscale’s IBIT, which recorded a substantial $73 million in net withdrawals. Other ETFs, including those from Fidelity, Ark Invest, Bitwise, and VanEck, saw outflows ranging between $2 million and $7 million, according to SoSoValue data. In contrast, BlackRock’s IBIT was the only ETF to report inflows, attracting nearly $75 million.
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Ether-tracked ETFs, which debuted on July 23, continued their struggle with nearly $100 million in net outflows on Tuesday, extending their losing streak to four days. These ETFs have seen a cumulative net outflow exceeding $400 million since their launch. Grayscale’s ETHE has been particularly hard hit, with losses totaling $1.84 billion. Conversely, BlackRock’s ETHA has led inflows with $618 million.
The volatility in the cryptocurrency market followed a dramatic week where Bitcoin surged to over $69,000. This spike was fueled by Trump’s appearance at the Bitcoin 2024 conference in Nashville, where he proposed significant changes, including the dismissal of U.S. SEC Chair Gary Gensler and the establishment of a strategic Bitcoin reserve if elected. However, Bitcoin’s price fell by up to 5% on Monday after the U.S. Marshals Service transferred $2 billion worth of BTC to new wallets, raising concerns about a potential liquidation.
Traders are now bracing for further market fluctuations as major U.S. technology firms prepare to release their earnings this week—an event known to impact Bitcoin prices. “Election headlines will remain a major focus, but several key macroeconomic events are also on the horizon,” Singapore-based QCP Capital noted in a Tuesday Telegram broadcast. “Key events starting with the FOMC meeting on Wednesday, megacap tech earnings (Apple, Amazon, Meta) throughout the week, and unemployment data on Friday.”
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In light of these developments, QCP Capital maintains a cautious outlook for Bitcoin, suggesting a range-trading strategy amidst the prevailing uncertainty. The interplay of election dynamics and macroeconomic factors will likely continue to influence market trends and investor sentiment in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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