The 11 spot Bitcoin ETFs available in the U.S. saw $1.2 billion in net outflows in just 8 days. According to Bloomberg data from Sept. 9, investors pulled out approximately $1.2 billion from these ETFs between Aug. 30 and Sep. 6. This marks the longest period of withdrawals since these funds started trading on January 10.
The outflows occurred because Bitcoin faced a tough first week of September. The price dropped from a high of $64,668 on Aug. 26 to a low of $53,491 by Sept. 7, marking a 17.28% decline in just two weeks. Analysts point out that Bitcoin has traditionally struggled in September.
In the crypto world, people often refer to September as “Rektember” because digital asset prices tend to take a hit or get “rekt” during this month. By October, the situation usually improves a bit, so it’s often called “Uptober,” reflecting the relief and upward trend in prices.
Bitcoin dominates 2024 ETFs
At the beginning of September, Bitcoin dropped to its lowest point in two weeks, dropping over 2%. Despite this dip, analysts remain optimistic about its growth potential. Even with its occasional drops, financial expert Suze Orman thinks everyone should have some Bitcoin.
Orman shared in an interview that as younger investors start earning more, they’ll choose Bitcoin as one of their investments, which will likely drive its price up.
Even with some capital leaving the market, cryptocurrencies have been a big player in this year’s ETF world. Out of the 400 new ETFs launched in 2024, the top four focus on BTC. These include Fidelity’s Wise Origin Fund, BlackRock’s iShares Bitcoin Trust, ARK 21Shares, and Bitwise’s Trust, according to data from ETF.com.
Out of the 25 ETFs with the highest inflows this year, 13 focus on cryptocurrencies. Ten of these ETFs target Bitcoin, while three centers on Ethereum. The iShares Ethereum Trust ETF stands out as the seventh-largest ETF launch of 2024, crossing the $1 billion mark in August.
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