Bitcoin And Ethereum ETFs Face Massive Withdrawals Amid Instability
By: Isha Das
The past few weeks have marked a tumultuous phase for Bitcoin and Ethereum spot Exchange-Traded Funds (ETFs), as they encountered substantial withdrawals. In a striking display of investor caution, U.S. Bitcoin spot ETFs experienced total outflows exceeding $900 million, making it the fifth consecutive week of net redemptions. This bearish trend reflects a deepening wariness among institutional investors regarding the premier cryptocurrency, pointing to weak market confidence stemming from recent price fluctuations and corrections.
Analyses indicate that the withdrawals are majorly concentrated in certain influential funds. BlackRock’s IBIT alone recorded $338.1 million in net outflows, which was the highest among all the funds. Other notable funds like Fidelity’s FBTC, Ark’s ARKB, and Invesco’s BTCO also faced significant outflows, collectively contributing to an estimated total of $5.4 billion being withdrawn in the last five weeks. Grayscale's GBTC stood out against this backdrop as the only fund witnessing a positive net inflow of $5.5 million, amidst largely ubiquitous losses.
The overall market sentiment is mirrored in the Ethereum spot ETFs, which have similarly been impacted by investor caution. Over the past week, the Ethereum ETFs registered net withdrawals of $189.9 million, extending their own streak of outflows to a third consecutive week. As with Bitcoin, BlackRock's ETHA appeared to bear the brunt, seeing the largest withdrawals amounting to $63.3 million. Amid these outflows, Ethereum remains traded at approximately $1,924, reflecting a slight 0.73% gain over the last 24 hours, offering a glimmer of stability in a largely wavering market. In contrast, Bitcoin's price lingered around $84,009, showing minimal change over the daily timeline.
Beyond the ordeal faced by ETFs, a separate matter unfolded as a UK man’s protracted quest to recover lost Bitcoin from a landfill hit another roadblock. The man's hard drive, reportedly containing private keys to 8,000 Bitcoin, became the center of a legal battle that saw his latest appeal dismissed by the UK Court of Appeals. Unfazed, the individual now contemplates taking his plea to the European Convention on Human Rights, motivated by a drive to reclaim his lost digital fortune.
