On September 5, the cryptocurrency market witnessed a dramatic surge in outflows from spot Bitcoin ETFs, signaling heightened investor anxiety. Data from SoSoValue reveals that the 12 spot Bitcoin ETFs experienced outflows totaling $211.15 million, a staggering increase from the $37.29 million recorded the day before.
Leading the exodus was Fidelity’s FBTC, which saw a substantial $149.5 million exit. Following closely were Biwise’s BITB, Grayscale’s GBTC, and Grayscale Bitcoin Mini Trust, which recorded outflows of $30 million, $23.2 million, and $8.4 million, respectively. Fidelity’s FBTC has also led the outflows over the past week, with $374 million withdrawn, surpassing the $227 million outflows from Grayscale’s GBTC.
In contrast, BlackRock’s IBIT, the largest spot Bitcoin fund with over $20.91 billion in total inflows, remained stable, alongside the eight other Bitcoin ETFs which showed no significant movement.
The total daily trading volume for these 12 Bitcoin ETFs fell to $1.35 billion on September 5, a decrease from $1.41 billion the previous day. Bitcoin (BTC) itself slipped by 0.9%, trading at $56,327 as of the latest data from crypto.news.
This retreat in Bitcoin’s price comes amid a broader wave of fear gripping the crypto industry. The fear and greed index has plunged to an extreme fear level of 22, the lowest in over a month, according to Alternative data. This heightened fear appears to be driven by persistent concerns about a potential U.S. recession, exacerbated by a string of weak economic indicators. Moreover, institutional demand for Bitcoin has been waning, with spot Bitcoin ETFs witnessing consecutive outflows for seven days, shedding over $1 billion since August 27.
In parallel, the nine spot Ether ETFs also displayed bearish trends but with far less severity. Total outflows amounted to $152.72K on September 5, a notable drop from the previous day. Grayscale’s ETHE saw $7.4 million in outflows, while the Grayscale Ethereum Mini Trust nearly balanced this with $7.2 million in inflows. The remaining seven Ether funds saw no significant activity.
The total trading volume for Ether ETFs declined to $108.59 million on September 5 from $145.86 million on September 4. Ethereum (ETH) also fell by 0.9%, trading at $2,378.
Also Read: Bitcoin To Surge In Q4? Analyst Jamie Coutts Predicts Strong Rally As BTC Hovers At $56,087
Ethereum’s fear and greed index mirrored Bitcoin’s decline, dipping into the fear zone of 34. This reflects a growing sense of uncertainty and caution among investors, highlighting the prevailing concerns in the cryptocurrency market.
As the crypto market navigates through these turbulent waters, the impact of investor sentiment on both Bitcoin and Ethereum ETFs underscores a critical moment for the industry.
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.
About The Author
