Sat, September 07, 2024 at 12:36

• 

  Kang-hoon

  • Hello Annie, today I have some significant news regarding Bitcoin and Ethereum spot ETFs.

  • On September 6th, U.S. Bitcoin spot ETFs saw net outflows for the eighth consecutive day.

  • 
• Annie

  • Wow, eight days in a row?

  • That's quite a streak.😮 How much was the outflow this time?

  
• 

  Kang-hoon

  • Indeed, it is.

  • According to Farside Invest, the net outflows amounted to $170 million.

  • This includes $52.9 million from Grayscale GBTC, $85.5 million from Fidelity FBTC, and smaller amounts from other ETFs.

• Annie

  • That's a substantial amount.

  • What about Ethereum spot ETFs?

  • Are they experiencing similar outflows?

  
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• 

  Kang-hoon

  • Yes, Ethereum spot ETFs are also seeing net outflows, but on a much smaller scale.

  • On the same day, they experienced net outflows of $6 million.

• Annie

  • Hmm, interesting.

  • So, both Bitcoin and Ethereum ETFs are facing outflows.

  • What could be causing this trend?

  
• 

  Kang-hoon

  • There are several factors at play.

  • Market sentiment is currently bearish, and investors might be reallocating their assets to less volatile investments.

  • Additionally, regulatory uncertainties could be contributing to the outflows.

• Annie

  • I see.

  • Are there any specific ETFs that were hit the hardest?

  
• 

  Kang-hoon

  • Yes, the largest outflows were from Grayscale GBTC with $52.9 million and Fidelity FBTC with $85.5 million.

  • Other ETFs like Arc21Shares ARKB, Bitwise BITB, and Valkyrie BRRR also saw significant outflows.

• Annie

  • That's quite a diverse range of ETFs.

  • How do you think this will impact the overall market?

  
• 

  Kang-hoon

  • The continuous outflows are likely to weigh on market sentiment further.

  • 

  • Investors might become more cautious, leading to reduced inflows and potentially lower prices for both Bitcoin and Ethereum.

• Annie

  • That makes sense.

  • Are there any related developments we should be aware of?

  
• 

  Kang-hoon

  • Yes, VanEck recently announced that they will be closing their Ethereum futures ETFs.

  • This move could indicate a broader trend of declining interest in cryptocurrency ETFs.

• Annie

  • Oh, that's significant.😕 Do you think this trend will continue in the near future?

  
• 

  Kang-hoon

  • Given the current market conditions and investor sentiment, it is likely that we will continue to see outflows from cryptocurrency ETFs in the short term.

  • The bearish sentiment in the cryptocurrency derivatives market also supports this outlook.

• Annie

  • Thank you for the detailed explanation, Kang-hoon.

  • So, would you say this news is a negative development for the market?

  
• 

  Kang-hoon

  • Yes, Annie.

  • This is definitely a negative development.

  • The continuous outflows and bearish sentiment are likely to put downward pressure on cryptocurrency prices and could deter new investors from entering the market.

• Annie

  • Got it.

  • Thanks for the insight, Kang-hoon.

  • This helps a lot in understanding the current market dynamics.😊

  
• 

  Kang-hoon

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.