The post Bitcoin ETFs Face $94 Million Outflow in August Despite Eight-Day Net Inflow Streak appeared on BitcoinEthereumNews.com.

The U.S. spot bitcoin exchange-traded funds (ETFs) have experienced a notable shift, ending August with a significant net outflow despite an initial streak of positive inflows. In total, these funds recorded a net outflow of approximately $94 million, reflecting a concerning trend amid fluctuating bitcoin prices. Grayscale’s GBTC led the outflows, showcasing a cumulative outflow of nearly $20 billion since the beginning of the year, underscoring investors’ shifting sentiment in the market. In August, the U.S. spot bitcoin ETFs faced unexpected net outflows despite an earlier surge, raising questions about investor confidence and market stability. August Overview: A Topsy-Turvy Month for Bitcoin ETFs August was a tumultuous month for U.S. spot bitcoin ETFs, culminating in a staggering net outflow of around $94 million. This shift is particularly dramatic given that earlier in the month, these funds enjoyed a robust eight-day streak of net inflows. According to data sourced from SoSoValue, the inflow on the month’s best day, August 23, amounted to more than $250 million, signaling substantial investor interest. However, this enthusiasm waned dramatically by the end of the month, primarily influenced by a downward trend in bitcoin prices from their peak earlier in August. Diverging Trends: Inflows vs. Outflows The fluctuation in net flows is indicative of the volatile nature of cryptocurrency investments. Notably, August 2 saw the sharpest decline, with the funds losing $237 million in a single day. The market dynamics reflect the larger narrative surrounding cryptocurrency investments, with external factors like regulatory developments and global economic conditions playing crucial roles. Furthermore, the cumulative net assets of commercially available bitcoin funds fell to approximately $53.8 billion, down $4.24 billion from earlier in the month. BlackRock’s IBIT and Grayscale’s GBTC: Market Leaders Under Pressure The outflows in August were especially pronounced for leading funds like BlackRock’s IBIT, which…

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Filed under: News - @ August 31, 2024 5:27 pm