Bitcoin exchange-traded funds (ETFs) experienced a significant turnaround on September 24, attracting $241 million in net new investments. This recovery followed two consecutive days of substantial withdrawals, indicating renewed investor confidence in the digital asset product.
In sharp contrast, Ethereum ETFs continued to face pressure, recording another day of significant outflows. The diverging trends highlight a clear difference in current institutional sentiment between the two largest cryptocurrencies.
Key Takeaways
- Bitcoin spot ETFs recorded $241 million in net inflows on September 24, reversing a two-day outflow trend.
- BlackRock’s IBIT led the inflows with $128.9 million, followed by Ark's ARKB with $37.7 million.
- Ethereum spot ETFs saw continued redemptions, with $79.4 million in net outflows on the same day.
- Total assets in Bitcoin ETFs now stand at nearly $150 billion, while Ethereum ETF assets are approximately $27.4 billion.
- The market is also reacting to a broader slowdown in institutional demand and recent price volatility in both Bitcoin and Ethereum.
Bitcoin ETFs Reverse Course After Heavy Outflows
After a challenging period, U.S.-based spot Bitcoin ETFs demonstrated resilience with a strong influx of capital. The $241 million in net inflows on September 24 marked a decisive shift from the previous two sessions, which saw a combined $347.2 million exit the funds.
Data from SoSoValue shows that the withdrawals peaked on September 22 with $363 million in outflows, followed by another $103.6 million on September 23. This period of selling was largely attributed to market adjustments following the Federal Reserve's recent interest rate decisions and anticipation of new U.S. inflation data.
Leading Funds Drive the Recovery
The rebound was primarily driven by a few key players in the ETF market. BlackRock’s iShares Bitcoin Trust (IBIT) was the top performer, attracting $128.9 million in new funds. This brings IBIT's total net assets to an impressive $87.2 billion.
Other significant contributions came from:
- Ark Invest and 21Shares’ ARKB: $37.7 million in net inflows.
- Fidelity’s FBTC: $29.7 million in net inflows.
- Bitwise’s BITB: $24.7 million in net inflows.
Smaller, yet positive, flows were also seen in VanEck’s HODL ($6.4 million) and Grayscale’s recently converted BTC fund ($13.5 million).
Bitcoin ETF Market Snapshot
As of September 24, total assets held by spot Bitcoin ETFs reached $149.7 billion. This figure represents approximately 6.62% of Bitcoin's entire market capitalization. Cumulative net inflows since their launch have now surpassed $57.49 billion.
Ethereum ETFs Continue to Struggle with Redemptions
While Bitcoin products found renewed demand, Ethereum ETFs told a different story. These funds experienced another day of investor withdrawals, with net outflows totaling $79.4 million on September 24. This extends a consistent trend of redemptions that has marked the past week.
Fidelity's Ethereum ETF (FETH) recorded the largest single outflow of the day at $33.2 million. It was followed closely by BlackRock’s ETHA, which lost $26.5 million. Grayscale’s ETHE also saw $8.9 million in outflows.
A Persistent Trend of Outflows
The withdrawals on September 24 are part of a larger pattern. On September 23, Ethereum ETFs lost $140.7 million, and a day earlier, on September 22, they shed $76 million. This sustained selling pressure indicates that institutional investors may be re-evaluating their short-term exposure to Ethereum through these investment vehicles.
Despite the recent wave of redemptions, Ethereum spot ETFs still hold a substantial $27.4 billion in assets. This accounts for 5.45% of ETH’s total market value, with cumulative inflows standing at $13.6 billion since their inception.
Broader Market Context and Price Action
The recent ETF flow data comes amid a period of cooling institutional interest and significant price volatility. According to analysis from Glassnode, net inflows into digital asset products saw a 54% decrease last week, falling to $931.4 million from $2.03 billion the week prior. This suggests a temporary pause in large-scale institutional buying.
Market analysts note that while institutional demand has slowed, retail activity has been leaning towards selling. CryptoQuant's spot taker buy-sell ratio has remained in negative territory since mid-August, signaling that more market sell orders are being executed than buy orders.
"The slowdown points to a pause in institutional buying, even as overall accumulation remains intact. If flows do not recover, we could see a deeper correction into October."
The price of major cryptocurrencies reflects this uncertainty. Bitcoin is currently trading below $110,600, marking a 6.9% decline in a 24-hour period. Ethereum has also faced significant downward pressure, falling below the $4,000 mark to trade at $3,882, a 7.3% drop in 24 hours and a 15% fall over the week.
Data from CoinGlass shows that the recent price drop in ETH triggered a $331 million long squeeze, with a total of $718 million in long positions liquidated over the past week.
Long-Term Outlook Remains Optimistic for Some
Despite the short-term market turbulence, some industry leaders maintain a positive long-term view. Coinbase CEO Brian Armstrong recently reiterated his prediction that Bitcoin could reach $1 million by 2030.
He cited several potential catalysts, including progress on U.S. crypto legislation, the possibility of government and sovereign wealth fund adoption, and rising long-term institutional interest. With a tightening supply and the infrastructure for large-scale investment now in place through ETFs, the fundamental case for growth remains strong in the eyes of many proponents.
