Spot Bitcoin ETF Sees Influx After Six-Day Decline
The Spot Bitcoin Exchange-Traded Funds (ETF) reversed its six-day drop on Monday, with an impressive $219 million influx in just one day.
According to data from ETF platform SOSOValue, the spot Bitcoin market showed renewed enthusiasm after experiencing consecutive days of outflows. This shift was a notable change after a series of net leaks.
The downward trend began on August 15 and continued until the previous Friday. The most significant outflow occurred on August 19, hitting $523.31 million, followed by another $315.7 million on Wednesday.
During this period, asset values fluctuated. Just a day before the spills began, Coingecko reported that Bitcoin had reached a record high of $124,128. However, it subsequently experienced an 11% decline, settling at around $110,186.
Fidelity and BlackRock Drive ETF Rebound
On Monday, Fidelity and BlackRock ETFs were the main contributors to the recovery, capturing most of the day’s net inflow. Fidelity’s Wise Origin Bitcoin Fund (FBTC) was at the forefront, garnering $65.56 million.
Following closely was BlackRock’s Ishares Bitcoin Trust (IBIT), bringing in $6.338 million, while Ark Invest’s Ark 21Shares Bitcoin ETF (ARKB) contributed $61.21 million.
Other funds also saw modest yet positive inflows. Bitwise’s BITB generated $15.18 million, with Grayscale’s Bitcoin Trust (BTC) and Vaneck’s HODL funds attracting $7.35 million and $6.32 million, respectively.
Investor Sentiment and ETF Sales
James Butterfil, director of research at Coinshares, remarked that the recent outflow from crypto funds was the largest since March. He suggested that the losses were linked to “polarized” investor sentiments regarding U.S. monetary policy.
But there’s a twist—this pessimism about the Federal Reserve’s stance led to a staggering $2 billion outflow. Yet analysts observed a shift in sentiment following U.S. Federal Reserve Chairman Jerome Powell’s speech, which was perceived as “more dovish than expected.”
On Saturday, the atmosphere in the crypto market shifted back to one of greed as investors responded positively to speculations of potential rate cuts in September.
The Crypto Fear & Greed Index, a widely used gauge of market sentiment, rose to a score of 60, indicating that market players are feeling more confident and willing to take risks with their investments.
