Spot Bitcoin ETF Sees Rebound After Six-Day Decline
The Spot Bitcoin Exchange-Traded Funds (ETF) saw a significant turnaround on Monday, bringing in $219 million after a six-day streak of net outflows.
According to ETF Data Platform SOSOVALUE, Monday marked a notable shift in sentiment for the spot Bitcoin (BTC) ETF, following a stretch of consecutive trading days where the funds were leaking cash.
This decline began on August 15 and persisted until Friday, with the most substantial outflow being $523.31 million recorded on August 19, followed by another $315.7 million on Wednesday.
After hitting record highs, the ongoing outflow had a notable impact on the Bitcoin market. Data from Coingecko indicated that Bitcoin reached an all-time high of $124,128 on August 14. However, it has since dropped by 11%, settling at around $110,186.
Fidelity and BlackRock Drive ETF Recovery
Fidelity and BlackRock ETFs were crucial in Monday’s recovery, contributing significantly to the day’s net inflow. Fidelity’s Wise Origin Bitcoin Fund (FBTC) topped the list with an inflow of $65.56 million.
Meanwhile, BlackRock’s Ishares Bitcoin Trust (IBIT) followed closely with $6.338 million, and Ark Invest’s Ark 21Shares Bitcoin ETF (ARKB) added $61.21 million.
Some smaller funds also made positive contributions. Bitwise’s BITB saw net inflows of $15.18 million, while Grayscale’s Bitcoin Trust (BTC) and Vaneck’s HODL funds recorded inflows of $7.35 million and $6.32 million, respectively.
Investor Sentiment Shifts Amidst Polarization
James Butterfil, Coinshares’ research director, noted that the recent outflow from Crypto Funds marked its largest loss since March. He attributed this trend to “increasingly polarized” sentiments among investors regarding U.S. monetary policy.
He mentioned that concerns about the Federal Reserve’s outlook have led to a $2 billion outflow. However, following a recent speech by U.S. Federal Reserve Chairman Jerome Powell, which many interpreted as more dovish than anticipated, the mood seemed to shift.
On Saturday, a wave of optimism returned to the crypto market as speculation grew around possible cuts in September, leading to a surge in sentiment. The Crypto Fear & Greed Index, a widely referenced measure of market sentiment, hit a score of 60, indicating a stronger appetite for risk among market participants.
