Key Points
- On Oct. 9, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a second consecutive day of net outflows, totaling $30.59 million.
- Spot Ethereum ETFs saw no activity, reflecting a differing trend in market demand compared to Bitcoin ETFs.
On October 9, there was a second day of consecutive net outflows from U.S. spot Bitcoin ETFs, with $30.59 million leaving these funds.
SoSoValue data revealed that 12 Bitcoin ETFs continued their outflow trend, with all outflows originating from ARK 21Shares’ ARKB, which saw $44.47 million exit the fund.
Partial Offset by BlackRock’s IBIT
BlackRock’s IBIT partially offset these outflows, reporting inflows of $13.88 million on the same day. Over the past two days, IBIT has received a total of $137.5 million. Since its launch, IBIT, the largest ETF by net assets, has seen net inflows of $21.71 million.
While the flow data for Bitwise’s BITB was not updated at the time, the remaining nine Bitcoin ETFs remained neutral for the day. Since their inception, U.S. spot Bitcoin ETFs have attracted a net total of $18.68 billion.
Market Volatility
Despite these mixed flows in Bitcoin ETFs, the broader cryptocurrency market struggled on October 9. Bitcoin (BTC), which began the day trading above $62,000, quickly fell to a daily low of $60,541, raising concerns of continued volatility.
This price dip led to the liquidation of over $40 million in Bitcoin long positions, further dampening market sentiment. Across the crypto space, liquidations of both long and short positions totaled $162.22 million within the last 24 hours, according to CoinGlass data. At press time, Bitcoin was still down 2.2%, trading at $61,031.
Ethereum ETFs See No Activity
In contrast to Bitcoin, spot Ethereum ETFs had a quiet day. SoSoValue data indicated that the nine spot Ethereum ETFs in the U.S. recorded zero inflows on October 9, after seeing outflows of $8.19 million the previous trading day.
Ethereum’s (ETH) price also fell 1.8% to $2,402 at the time of reporting, as investors remained cautious amid a 3.3% drop in the global crypto market, which stood at $2.23 trillion at the time of writing.
Contrasting Trends
Unlike the positive ETF flow for Bitcoin, Ethereum ETFs have been facing persistent outflows, indicating a different trend in market demand. CryptoQuant reports that, after 79 days of ETF trading, Ethereum ETFs have seen $4.1 billion in total net outflows, in contrast to Bitcoin ETFs, which have seen $29.1 billion in total net inflows.
This stark contrast with Bitcoin’s performance suggests that investor sentiment and institutional interest may be skewing more favorably towards Bitcoin in the current market environment.
According to Bitwise CIO Matt Hougan, the slow start of spot Ethereum ETFs is largely due to traditional investors still getting accustomed to the crypto market when the products were launched. He believes the timing was too early but expects Ethereum ETFs to gain momentum, potentially reaching $20 billion in assets within a year as interest grows.