Following a period of substantial inflows, US Spot Bitcoin and Ethereum Exchange Trade Funds (ETFs) are facing a season of major outflows. During this period, Bitcoin ETFs have been leading, and these withdrawals reflect the price of the underlying assets.
Data reviewed by analysts at Crypto Exchange Bitfinex revealed that investors had withdrawn at least $1.18 billion from the Spot Bitcoin ETF last week. Their Ethereum counterparts have had less outflows, probably due to the continued capital turnover into the Altcoin market.
A week of consistent spills
Bitcoin ETF recorded net flows of over $1.5 billion on six consecutive trading days from August 15th to 22nd. Market experts believe that the decline in demand reflects a more measured appetite from investors at this stage of the bull cycle.
Within the same period, Ethereum ETF has also witnessed more than $918 million in spills. However, the negative winning streak did not continue beyond August 20th. Despite these spills, ETH reached an ATH of over $4,940 on August 24th, but back at the time of press. Meanwhile, Bitcoin is declining, falling over $15,000 from top to bottom.
Investors’ risk-off approach to the Jackson Hole Symposium has exacerbated the decline in Bitcoin. They lifted the investment prior to the meeting. The market took a tremendous stance after the meeting, but the BTC was unable to maintain its bullish momentum. Major digital assets fell below $109,000 on Monday.
The agency supports the momentum of ETH
BTC struggled to maintain bullishness, but ETH was growing, driven by a sustained accumulation from the Ethereum Treasury Company. These entities absorb a significant portion of the sales pressure on ETH, reducing the downside risk. They provided meaningful support and their consistency helped Ethereum ETF outperform their Bitcoin counterparts.
Interestingly, ETH Treasury’s Bitmine Immersion Technologies has surpassed Mara Holdings to become the second largest digital assets treasury. Mara is a Bitcoin mining company. Such developments underscore the new role of ether as liquidity drivers in institutional markets.
The price momentum for BTC and ETH this week depends on influx from institutions and finance companies, but Bitfinex is urging traders to keep expectations low. This is because historically, risk asset ETFs have often witnessed a slower in positive flow towards the end of summer in August and September.
