Key Points
- Bitcoin ETFs experienced $1.2 billion in net outflows over eight days.
- Despite the outflows, crypto ETFs lead 2024’s biggest ETF launches.
- September has historically been a weak month for Bitcoin prices.
- Financial advisors remain optimistic about Bitcoin’s long-term potential.
US Bitcoin Exchange Traded Funds suffered a total outflow of $1.2 billion within this time frame. This is the longest outflow streak, since the issuance of spot Bitcoin ETFs in the US, which was in January 2024.
A clear correlation can be noted with the ETF fatigue undoing the upside. The above places were during a very bad period when the Bitcoin price touched – goodbye 17.28%, between the months learned in the last week of August and week 1 of September.
According to Bloomberg, the withdrawal of a 1.2 billion infusion into 11 US bitcoin ETFs is not only a passive course to bitcoin and cryptocurrency.
Bloomberg notes, however, that such a phenomenon reinforces typical historical seasonal patterns.
Analysts dubbed September a bearish month for Bitcoin including the coins market. and nicknamed it “Rektember” due to constant depreciation for a very long time.
Even with these losses, the sentiment surrounding Bitcoin ETFs and the overall long-term view of Bitcoin remains positive.
Also, available or recognizable financial advisers, like Orman, consider Bitcoin, the cryptocurrency, an asset that should be retained in the portfolio.
In the future, Orman thinks the younger generation will help in increasing the price of Bitcoin, as they will be shifting gradually to investing in cryptocurrencies.
#Ethereum ( $ETH ) Derivatives Net Flow: Over 40,000 ETH Withdrawn
The recent data shows a negative net flow of over 40,000 ETH on derivative exchanges. This is calculated as the difference between ETH deposits (inflows) and ETH withdrawals (outflows) from these platforms.
Key… pic.twitter.com/BH0DaSugMW
— CRYPTOMOJO_TA (@CRYPTOMOJO_TA) September 9, 2024
Crypto Dominates Bitcoin ETF Launches in 2024
Despite the short-term difficulties experienced concerning Bitcoin ETFs, the performance of the wider crypto ETF market has been stellar in 2024.
It is evident from the data that the crypto ETFs have been a leader in the launching activities of ETFs this year, registering over 400 new products brought to the market this year.
In 2024, ownership of the first four ETF launches is also characterized by celebrities such as Black Quest (iShares Bitcoin Trust), Fidelity Management and Research (Wise Origin Bitcoin Fund), ARK (21Shares Bitcoin ETF), and Bitwise (BITKRAFT ETF Trust).
This reflects how institutional interest in Bitcoin ETFs and other crypto products isn’t fully dead, even if Bitcoin prices have faced great headwinds of late.
Also, from the 25 largest ETF launches by inflows, 13 are covered h crypto, 10 are cryptocurrency-themed ETFs on Bitcoin, and 3 on Ethereum. Ethereum ETFs have also registered remarkable success especially when BlackRock’s iShares Ethereum Trust ETF achieved over 1 billion dollars in August.
The Road Ahead for Bitcoin ETFs
However, the month of September has treated Bitcoin poorly and one must bear the market’s seasonality in mind.
It is typical for the downturns to be followed by the “October” euphoric rises of both the Bitcoin ETFs and the BTC asset themselves, known by the investors as “Uptober”.
Many share that the long-term urges on the Bitcoin ETFs remain supported even more as institutional players keep launching the funds and pouring into the space.
All in all, even though the USD 1.2 billion outflows may provoke worries in the nearest perspective, the Bitcoin ETFs’ prospects seem more favorable, with a greater appreciation of the risks rather than absorption of the value from digital assets by various companies and investors.
