TLDR
- US spot Bitcoin ETFs saw $44M in outflows on Sept. 11, ending a two-day streak of positive inflows
- ARKB had the largest outflows at $54M, while Fidelity’s FBTC led inflows with $12.6M
- Spot Ethereum ETFs also saw net outflows of $542,870 on Sept. 11
- Bitcoin price climbed 3.37% to $58,318, while Ethereum gained 1.78% to $2,373
- Analysts suggest outflows are due to strong US economic data and upcoming Fed meeting
On September 11, 2024, US spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced a shift in momentum, recording net outflows after a brief period of positive flows.
The 12 spot Bitcoin ETFs in the United States logged a combined net outflow of $43.97 million, bringing an end to a two-day streak of positive inflows.
ARK 21Shares’ ARKB led the outflows with $54 million in withdrawals, followed by Grayscale’s GBTC with $4.6 million in net outflows. On the other hand, Fidelity’s FBTC bucked the trend, attracting $12.6 million in net inflows, while Invesco’s BTCO added $2.6 million.
The spot Ethereum ETF market also faced headwinds, with nine US-based funds recording a net outflow of $542,870. VanEck’s ETHV experienced the largest outflows at $1.7 million, while Fidelity’s FETH was the sole ETF to record inflows, albeit a modest $1.2 million.
On September 11, the total net outflow of Bitcoin spot ETFs was 43.9656 million US dollars. ARKB outflow was 54.03 million US dollars, Grayscale ETF GBTC outflow was 4.5935 million US dollars, and Fidelity ETF FBTC inflow was 12.5737 million US dollars. https://t.co/59u0BnDSW8
— Wu Blockchain (@WuBlockchain) September 12, 2024
Market Performance and Trading Volumes
Despite the outflows, trading activity remained robust. The total trading volume for Bitcoin ETFs surged to $1.27 billion on September 11, a significant increase from $717 million the previous day. Similarly, Ethereum ETFs saw their daily trading volume rise to $126.2 million.
In the broader cryptocurrency market, Bitcoin’s price climbed 3.37% over 24 hours, reaching $58,318, while Ethereum gained 1.78%, trading at around $2,373. These price movements occurred against the backdrop of ETF outflows, highlighting the complex dynamics at play in the crypto markets.
Economic Factors and Future Outlook
Analysts attribute the recent outflows to strong US economic data, including the latest consumer price index report, which showed a 0.2% rise in prices for August.
Investors are also closely watching the upcoming Federal Open Market Committee meeting, with expectations of a potential interest rate cut.
Ryan Lee, Chief Analyst at Bitget Research, suggests that a Federal Reserve rate cut could positively impact the crypto market. A 25-basis point cut might lead to a gradual rise in crypto prices as investors seek higher returns outside traditional markets.
A more substantial 50-basis point cut could trigger significant capital inflows into cryptocurrencies, particularly Bitcoin, potentially resulting in a stronger market rally but also increased volatility.
