- Bitcoin ETFs IBIT and FBTC excelled with over $10 billion in assets amid the market downturn.
Ethereum ETFs struggled, facing cumulative outflows as Bitcoin and Ethereum prices declined.
As a seasoned crypto investor with a knack for navigating market downturns and uptrends alike, I find myself intrigued by the recent developments in the ETF landscape. The resilience displayed by BlackRock’s IBIT and Fidelity’s FBTC amidst the broader crypto market decline is nothing short of impressive. These two standout Bitcoin ETFs have proven their mettle, attracting significant investments even during turbulent times.
In the face of a general slump in the cryptocurrency market, it’s important to note that Bitcoin Exchange-Traded Funds (ETFs) are also susceptible to these prevailing market movements.
Latest findings by Farside Investors indicate a substantial withdrawal, worth approximately $52.9 million, from Bitcoin Exchange-Traded Funds (ETFs) on October 2nd.
Balchunas highlights top performers
Despite the difficult investment terrain, Eric Balchunas, a senior ETF analyst at Bloomberg, has singled out BlackRock’s IBIT and Fidelity’s FBTC as the leading Bitcoin ETFs in the 2020s.
Both funds have reached the “university-level” in terms of assets, managing more than $10 billion collectively. This impressive figure underscores their robustness and continued attractiveness to investors, even during challenging market conditions.
In his X (formerly Twitter) post, Balchunas noted,
Echoing Balchunas’ sentiment, an X user added,
Blackrock’s and Fidelity’s Bitcoin ETFs analyzed
The data from Farside Investors reinforces the trend, as it shows that since its debut, BlackRock’s IBIT has accumulated an impressive $21.5 billion through investments, and Fidelity’s FBTC has garnered $9.9 billion as well.
These two ETFs have set the pace, leaving other funds trailing.
Contrary to the typical perception that October, which follows a potentially downward trending September, delivers negative returns or a “bearish” market (Uptober), it has shown varying outcomes this year.
On October 1st, IBIT received a significant influx of approximately $40.8 million, whereas FBTC encountered outflows totaling around $144.7 million during the same period. This shows a stark contrast between the two institutions.
On October 2nd, IBIT experienced withdrawals totaling $13.7 million, whereas FBTC saw inflows of $21.1 million, demonstrating the fluctuating trends and evolving relationships in the exchange-traded fund (ETF) marketplace.
Ethereum ETF performance
Conversely, the performance of Ethereum [ETH] ETFs has also been underwhelming.
On October 1st, the total withdrawals from Ethereum-based ETFs amounted to $48.6 million. BlackRock’s ETHA did not experience any inflows or outflows during this period, while Fidelity’s FETH had outflows of $25 million.
ETHA continued to struggle, posting outflows of $18 million on the following day.
Whereas FETH maintained a steady position with no flows recorded.
This trend highlights the challenges facing Ethereum ETFs in the current market environment.
Growing concerns around Grayscale’s GBTC
Amidst there was another X user who asked a very concerning question,
“Would this not then make #GBTC one of the worst performing ETFs of this decade?”
The recent report from Farside Investors provides additional support for this fact: Since its inception, Grayscale’s GBTC has seen an astonishing total withdrawal of approximately $20.1 billion.
In a similar vein, it’s worth noting that the Grayscale Ethereum ETF (ETHE) experienced substantial withdrawals amounting to $2.93 billion. This figure exceeded the collective withdrawals from all other Ethereum ETFs combined.
BTC and ETH price action
Regarding prices, both cryptocurrencies showed a drop, with Bitcoin being sold for approximately $60,480.03, representing a decrease of 0.98% over the last day.
Over the given timeframe, Ethereum’s price stood at approximately $2,347.81, experiencing a noticeable drop of about 4.35%.
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2024-10-04 08:08