Bitcoin (BTC) and Ethereum (ETH) linked exchange-traded funds (ETF) outflows are hitting the roof posing a direct impact on the digital assets market.
BTC ETFs saw a massive $170 million withdrawal on September 6, dragging the cumulative weekly outflow toll to $706 million. Ether ETFs are not safe either, as they saw outflows of more than $91 million in the same period.
Rising market volatility and global economic uncertainty, like higher interest rate expectations, have pushed even seasoned investors to rethink their positions. Bitcoin price has dropped by over 5% in the last 7 days to hover around the $55,000 mark.
Bitcoin ETFs sheds $706 million
As per the data shared by Sosovalue, Bitcoin ETFs have posted red indexes for 8 consecutive days, with none of the 12 BTC ETFs having a net inflow last week. The investment funds had a net outflow of $706 million in the last 7 trading days.
Fidelity ETF FBTC reported a massive outflow of $85.52 million on September 6 which forced it to post a weekly outflow of $404 million. It still holds a positive number of cumulative inflows with $9.42 billion. Grayscale ETF GBTC saw a withdrawal of $52.87 million on September 6 leading it to post a weekly outflow of $160 million. It has recorded a negative flow of $20 billion since its launch.
High Bitcoin ETF withdrawal has intensified the selling pressure in the crypto market. BTC price saw a decline of 5% in the last 7 days which forced it to revisit the $53K levels. The biggest crypto is still up by 29% on the year to date basis and trading at an average price of $54,830 at press time. Its 24-hour trading volume is up 16% to stand at $21.5 billion.
ETH ETFs face $91M outflow
Ether ETFs are not doing pretty well either. Data shows that these investment funds had a net outflow of $91.04 million last week. This has been the 4th consecutive week for ETH ETFs posting red indexes.
Grayscale’s ETHE reported a huge outflow of $10.70 million on September 6, adding to the cumulative negative flow of $2.67 billion. BlackRock’s ETHA was the only ETH ETF that posted an inflow of $4.72 million on the last trading day.
Ether is dealing with increasing fear in the market. ETH price has dropped by over 12% in the last 30 days. The second biggest crypto is trading at an average price of $2,288 at press time. The Dencun upgrade (March 2023) hasn’t helped either. Its fee burn rate and transaction volume have dropped, adding to inflationary supply concerns.
