Thu, September 19, 2024 at 12:43

• 

  Kang-hoon

  • Hello Annie, today I have some intriguing news regarding Bitcoin and Ethereum spot ETFs listed on U.S. exchanges.

  • The Federal Reserve's recent interest rate cut has had a significant impact.

  • 
• Annie

  • Oh, that sounds interesting!😊 What exactly happened?

  
• 

  Kang-hoon

  • Well, according to data from Farside Investors, $52.7 million flowed out of Bitcoin ETFs just yesterday.

  • This outflow might be due to investor concerns about the magnitude of the Fed's rate cut and the uncertainty of future market movements.

  • 
• Annie

  • Wow, that's a substantial amount!😲 Were there any ETFs that saw inflows instead?

  
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• 

  Kang-hoon

  • Yes, indeed.

  • Only the Grayscale Mini Bitcoin Trust (BTC) saw net inflows of $2.7 million.

  • They recently lowered their fees drastically, which might have attracted investors.

• Annie

  • Interesting!

  • What about Ethereum ETFs?

  • Did they experience similar trends?

  
• 

  Kang-hoon

  • Ethereum ETFs also saw negative flows, amounting to $9.8 million.

  • Specifically, the BlackRock Fund (ETHA) saw inflows of $4.9 million, while the Grayscale Ethereum Trust (ETHE) experienced outflows of $14.7 million.

• Annie

  • That's quite a contrast between the funds.🤔 Do you think this trend will continue?

  
• 

  Kang-hoon

  • It's hard to predict with certainty, but the outflows suggest that investors are cautious about the current market conditions and the Fed's monetary policy.

• Annie

  • I see.

  • How did the market react overall to the Fed's rate cut?

  
• 

  Kang-hoon

  • Interestingly, Bitcoin rallied on a positive reaction to the big cut, breaking the $63K mark.

  • This indicates that while some investors are cautious, others are optimistic about the potential for higher returns.

• Annie

  • That's a significant rally!😮 Do you think this will have a long-term positive impact on Bitcoin and Ethereum?

  
• 

  Kang-hoon

  • In the short term, the rally is a positive sign, but the outflows from ETFs indicate underlying concerns.

  • The long-term impact will depend on how the market interprets the Fed's future actions and overall economic conditions.

• Annie

  • So, would you say this news is ultimately good or bad for the market?

  
• 

  Kang-hoon

  • I would categorize this as bad news.

  • The outflows from ETFs highlight investor uncertainty and caution, which could lead to increased volatility and potential downturns in the market.

• Annie

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

  • This really helps me understand the current market dynamics.👏

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Always happy to provide insights.

  • Stay informed and cautious in your investment decisions.

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