Crypto ETFs hemorrhage $607M in single day of record outflows

The bullish tide that carried Bitcoin and Ethereum to hit new records in August has turned sharply. Even crypto-linked exchange-traded funds (ETFs), which were one of the major reasons behind the market surge, are now witnessing huge inflows. Ether ETFs posted their second-worst day on record and their fifth straight session of outflows.

September 5 saw Ether ETFs hitting almost $447 million in net outflows. This comes after posting its biggest outflow of $465 million on August 4. However, Ethereum price has surged by over 15% in the last 30 days.

Bitcoin ETFs drop $160M in outflows

The sell-off saw crypto funds (both Bitcoin and Ether) lose $607 million in a day. The reversal comes after a blockbuster August, when the same products attracted $3.2 billion combined inflows. However, Ether ETFs had hit $3.87 billion by themselves for the month, and it was BTC ETFs that dragged the momentum with $751 million of outflows.

Bitcoin ETFs saw $160 million in outflows on Friday as all twelve listed products failed to post gains. The funds recorded $227.5 million outflow on the previous day. Ark 21Shares’ ARKB led the bleed with $125.5 million of withdrawals, while Fidelity’s FBTC logged $117.5 million in outflows. Only BlackRock’s IBIT managed to attract fresh money with $134.8 million of inflows.

BTC price dropped marginally over the last 24 hours to trade around $110,700. Its trading volume remains stable at $49 billion. Bitcoin has seen a rollercoaster ride lately as it gained more than 2% in the last 7 days while dropping about 5% over the past 30 days.

Ethereum sheds $400 million

Data shows BlackRock’s ETHA led the Ether ETFs’ pullback on September 5, hemorrhaging $309.8 million. The sell-off spread to Grayscale’s ETHE and Fidelity’s FETH with outflows of $51.7 million and $37.7 million, respectively.

Ethereum has suffered a bit over the last 7 days with a 2% drop. ETH slipped 5% on Friday after weaker-than-expected US jobs data rattled markets all around. However, the altcoin leader’s price is still up by 68% over the past 60 days. It is trading at an average price of $4,299, down by 13% from its all-time high. Analysts are watching whether the $4,000 level will be retested if sentiment continues to erode.

Market sentiment remains balanced as investors are still finding clues. The Crypto Fear and Greed Index shows “Neutral” feeling, but tilting toward “Fear” territory. August’s exuberance, when investors poured billions into Ether ETFs, has given way to September’s hesitation.

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