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Spot Bitcoin ETFs Break Six-Day Outflow Streak
Spot Bitcoin exchange-traded funds (ETFs) ended a six-day streak of net outflows on Monday, with $219 million in daily inflows.
ETF data platform SoSoValue reported that spot Bitcoin (BTC) ETFs made a comeback on Monday, indicating a change in sentiment after experiencing six consecutive trading days of net outflows.
The outflow streak commenced on August 15 and continued through Friday, with the most significant outflows reaching $523.31 million on August 19, followed by $311.57 million on Wednesday.
This week of outflows occurred after a Bitcoin market correction, which took place after the asset hit record highs. On August 14, CoinGecko data indicated that Bitcoin achieved an all-time high of $124,128. Since that peak, the asset had fallen by 11% to $110,186.
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Fidelity and BlackRock ETFs primarily spearheaded the rebound on Monday, contributing to most of the daily net inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the charge, attracting $65.56 million.
Following closely was BlackRock’s iShares Bitcoin Trust (IBIT), which drew in $63.38 million, while ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB) added $61.21 million.
Other issuers experienced smaller yet positive contributions to the day’s inflows. Bitwise’s BITB recorded $15.18 million in net inflows, while Grayscale’s Bitcoin Trust (BTC) and VanEck’s HODL fund reported $7.35 million and $6.32 million, respectively.
Market Sentiment Analysis
On Monday, CoinShares’ head of research, James Butterfill, noted that the recent outflows from crypto funds represented their largest losses since March. Butterfill connected the sell-off to the “increasingly polarized” investor sentiment surrounding US monetary policy.
He stated that the pessimism regarding the Federal Reserve’s position led to $2 billion in outflows. Nevertheless, the analyst remarked that sentiment shifted following United States Federal Reserve Chair Jerome Powell’s address, which was widely viewed as “more dovish than expected.”
On Saturday, crypto sentiment turned towards greed as the crypto market rebounded after Powell fueled speculation about a potential rate cut in September.
The Crypto Fear & Greed Index, a popular tool for assessing market sentiment, climbed to a “Greed” score of 60. This indicated that market participants were displaying a greater appetite for risk and grew more confident in their buying decisions.
