Eleven U.S.-based bitcoin exchange-traded funds (ETFs) saw a combined net outflow of $1.2 billion over an eight-day period.
September 9, Bloomberg data Showed Investors withdrew roughly $1.2 billion from 11 listed physical Bitcoin (BTC) ETFs between Aug. 30 and Sept. 6, the longest streak of outflows since their inception on Jan. 10.
The U.S.-based Bitcoin ETF has seen its longest run of outflows since its launch in January. Source: Bloomberg
The exodus comes after Bitcoin prices slumped in the first week of September, dropping from a high of $64,668 on Aug. 26 to a low of $53,491 on Sept. 7 — a 17.28% drop in just two weeks. However, analysts point out that BTC has historically performed poorly in September.
BTC price drop mimics standard “rectember”
The terms “Rektember” and “Uptober” are commonly used in the cryptocurrency industry, as digital asset prices often “rekt” in September and “get some relief” in October.
Bitcoin hit a two-week low in early September and dropped more than 2% to start the month, but analysts still believe in the digital asset's upside potential.
Despite the short-term decline, financial advisor Suze Orman believes everyone should own Bitcoin and that the next generation of investors could influence the future of cryptocurrencies.
In an interview with CNBC, Orman said that as young people start earning more money, BTC will become one of their preferred investments, driving up asset prices.
Related: US Companies Projected to Buy $10.3 Billion Worth of Bitcoin in Next 18 Months – Report
Cryptocurrencies dominate ETF launches in 2024
Despite the exodus, cryptocurrencies dominated the ETF space with 400 new ETFs launched in 2024. According to data from ETF Store, the four largest ETFs launched in 2024 are all spot Bitcoin ETFs. These include BlackRock's iShares Bitcoin Trust, Fidelity's Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, and Bitwise's Bitcoin ETF Trust.
Top ETFs launching in 2024. Source: ETF Store
Of the top 25 ETF launches by inflows, 13 are crypto-related, 10 are Bitcoin-based ETFs, and 3 are Ethereum-related funds. Among Ether (ETH) ETFs, the iShares Ethereum Trust ETF is the seventh-largest ETF launched in 2024, surpassing the $1 billion mark in August.
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