On Monday, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a significant dip in trading activity, marking a notable decline in investor engagement. According to recent data, the sector saw $61.98 million in daily net inflows amid a total daily trade volume of $779.87 million. This figure represents the lowest trading volume since February 6, and is among the third lowest recorded overall.
The drop is stark when compared to the robust $5.24 billion daily trade volume observed on August 6. The decrease in trading activity highlights a cautious market sentiment following recent heavy sell-offs. “The low trading volume is expected as the market sentiment has remained low since the heavy sell-offs a few weeks ago,” said Augustine Fan, Head of Insights at SOFA.org, in an interview with The Block. He further attributed the subdued market activity to seasonal factors such as summer holidays and a decline in recession fears, which have led investors to adopt a wait-and-see approach ahead of the Federal Reserve’s Jackson Hole symposium later this week.
In terms of inflows, Monday’s data reveals that BlackRock’s IBIT saw the highest net inflows of $92.68 million, while Fidelity’s FBTC added $3.87 million. Conversely, Bitwise’s spot Bitcoin fund experienced $25.72 million in net outflows, and Invesco’s BTCO faced $8.84 million in negative flows. This mixed performance underscores the market’s current volatility and investor apprehension.
Spot Ether ETFs also reported notably low trading volume, with approximately $124 million in daily transactions—the lowest since their debut. The nine spot Ether funds collectively experienced $13.52 million in net outflows. Grayscale’s ETHE led the outflows with $20.30 million, while Grayscale’s Ethereum mini trust and Bitwise’s ETHW recorded small net inflows of $4.92 million and $1.87 million, respectively. Fan noted that traditional finance remains hesitant to invest in Ether ETFs due to ongoing concerns about staking legalities and recent ETF issues, including Solana ETF approval delays.
The U.S. Securities and Exchange Commission has reportedly raised concerns about the potential security status of Solana with ETF issuers, contributing to Cboe BZX’s recent decision to withdraw Solana ETF 19b-4 filings.
Also Read: Bitcoin Surges Above $61,000 As ETFs See $61M Inflows—Highest Since August Peak
Despite the downturn in trading volume, Bitcoin and Ether prices showed modest gains. Bitcoin rose by 4.22% to $60,935, while Ether increased by 1.68% to $2,672, according to The Block’s crypto price page. Fan observed that while Bitcoin remains constrained around the $60,000 mark, largely due to fears of supply selling, Ether’s performance continues to lag due to fundamental issues such as low mainnet usage compared to layer 2 solutions.
As the market navigates these uncertainties, investors are closely watching for signals from the Fed’s Jackson Hole meeting and further developments in regulatory landscapes that could impact future trading volumes and investment flows.
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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