US Spot Bitcoin ETFs Face Headwinds, Ending Q4 2024 With $300 Million Outflows
US Spot Bitcoin ETFs Face Headwinds, Ending Q4 2024 With $300 Million Outflows
The first week of Q4 2024 saw a significant shift in sentiment for US spot Bitcoin ETFs, with over $300 million flowing out of these funds. This downturn coincided with Bitcoin’s bearish start to October, where it experienced a decline of over 6% in the first five days of the month.
According to SoSoValue, the US-based spot Bitcoin ETFs registered a cumulative net outflow of $301.54 million in the first week of Q4, marking an end to a three-week streak of positive returns. Following a net inflow of $61.30 million on September 30, these investment funds quickly transitioned into a bearish state as Bitcoin’s value dropped amidst rising geopolitical tensions in the Middle East. This resulted in three consecutive days of cumulative negative outflows totaling $388.42 million.
While Friday, October 4 saw a rebound with gains of $25.59 million, it proved insufficient to offset the earlier deficit. Despite this negative weekly performance, the spot Bitcoin ETFs are still anticipated to attract substantial investments in this quarter, aligning with the lofty price expectations for Bitcoin. Notably, these investment funds have showcased strong speculative performance since their launch in January.
Data shared by analyst Quinten Francois highlights the spot BTC ETFs occupying the top four positions of successful ETF launches in 2024. With a Bitcoin bull run on the horizon, these exchange-traded products are poised to garner increased interest from institutional investors in the coming weeks.
Currently, the spot BTC ETFs boast a cumulative total net inflow of $18.50 billion, with total net assets valued at $57.73 billion, representing 4.68% of the Bitcoin circulating supply. BlackRock’s IBIT maintains market dominance with total investments of $22.91 billion, while Grayscale’s GBTC and Fidelity’s FBTC hold significant market positions with net assets of $13.75 billion and $11.09 billion, respectively.
Spot Ethereum ETFs Follow Suit with Outflows
Similar to their Bitcoin counterparts, US spot Ethereum ETFs also experienced net weekly outflows of $30.69 million in the first week of Q4, marking a return to a negative streak dating back to August 16. Unlike their Bitcoin counterparts, the ETH spot ETFs have faced a challenging debut with total net outflows of 553.66 million. However, they account for 2.28% of the Ethereum market supply with $6.6 billion in total net assets.
At the time of writing, Bitcoin trades at $62,062, with Ethereum valued at $2,414. Both assets have experienced negligible price movements in the past day.
**Featured image from Global Finance Magazine, chart from Tradingview**