- Bitcoin and Ethereum ETFs saw outflows for the first time post-Trump’s victory.
- Despite recent outflows, analysts predicted potential price surges for Ethereum and Bitcoin ETFs.
As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed countless ebbs and flows in the world of investing. The recent outflows from Bitcoin and Ethereum ETFs might seem concerning to some, but they are just another chapter in the intriguing narrative that is the cryptocurrency market.
The election of Donald Trump as the 47th U.S. President ignited a substantial increase in the cryptocurrency sector, causing Bitcoin [BTC] to break past its prior record highs, while other digital currencies also experienced growth.
The strong upward trend in these cryptocurrencies was mirrored by an influx of investments into Bitcoin and Ethereum [ETH] trading funds listed on exchanges (ETFs), indicating a rising level of trust among investors.
Ethereum and Bitcoin ETF update
Between November 5th and 13th, Ethereum ETFs experienced significant investments totaling approximately $796.2 million. During the same period, Bitcoin ETFs attracted even more investment – a whopping $4.73 billion – demonstrating a growing appetite for digital assets.
On November 14th, data from Farside Investors indicated that Bitcoin ETFs collectively withdrew approximately $400.7 million over eleven funds. Simultaneously, the price of Bitcoin dipped by 2%, reaching a figure of $89,164.
In my analysis, I’ve observed a net withdrawal of approximately $3.2 million from Ethereum Exchange-Traded Funds (ETFs), as the value of Ethereum dipped by 2.89%. At the time of this report, Ethereum was being traded at around $3,099.
As I observed the market, I noticed that the drop in prices for both Bitcoin and Ethereum seemed to parallel the withdrawal of funds from ETF investments. This suggests a temporary change in investor sentiment towards these digital assets.
In terms of Bitcoin ETFs, it’s only BlackRock’s IBIT and VanEck’s HODL that have been seeing an increase in investments, with approximately $126.5 million flowing into BlackRock’s product, and around $2.5 million going to VanEck’s.
At the same time, Bitcoin ETFs like Fidelity’s FBTC and Ark’s 21Shares ARKB reported substantial withdrawals totaling $179.2 million and $161.7 million respectively. A number of other funds saw little or no change in their investments.
Regarding exchange-traded funds (ETFs) based on Ethereum, BlackRock’s ETHA attracted investments worth approximately $18.9 million, while Invesco’s QETH experienced more moderate inflows amounting to $0.9 million.
Nevertheless, the majority of Ethereum ETFs saw no change, with Grayscale’s ETHE recording the greatest outflows amounting to $21.9 million.
Optimism surrounds ETFs
Regardless of the recent dip, the crypto community has retained a positive outlook, showing no signs of pessimism towards either the Bitcoin or Ethereum ETFs.
As a researcher delving into the intricacies of the crypto realm, I’ve noticed an interesting debate unfolding: The cumulative holdings of Bitcoin Exchange-Traded Funds (ETFs) might surpass the original bitcoins held by Bitcoin’s inventor, Satoshi Nakamoto.
Based on the findings of analysts Shaun Edmondson and Eric Balchunas from Bloomberg, U.S. Bitcoin ETFs have amassed roughly 1.04 million Bitcoins, which is almost as much as Satoshi Nakamoto’s estimated total holdings of around 1.1 million Bitcoins.
Furthermore, Ryan Sean Adams, a co-founder of Bankless, pointed out that although Ethereum ETFs have seen substantial withdrawals, there’s a possibility that this trend could reverse as positive inflows begin to occur.
According to Adams, this change could serve as a significant trigger. He anticipates that it might open up the path for Ethereum’s value to skyrocket, possibly even reaching $10,000.
He put it best when he said that ETH ETF is a
“Recipe for an ETH rocket to $10k.”
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2024-11-15 23:04