On July 23, Bitcoin ETF funds recorded significant net outflows of 866 BTC, while Ethereum ETF attracted 139,216 new ETH.
Data from Lookonchain shows significant shifts between cryptocurrency ETF products, with the Ethereum ETF increasing its Ethereum holdings, particularly BlackRock's iShares holding a large amount.
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10 Bitcoin ETF funds have recorded net withdrawals totaling 866 BTC, equivalent to about 102 million USD.
Bitwise is the leader in withdrawal flows with 354 BTC, currently holding 40,573 BTC.
9 Ethereum ETF funds attracted an additional 139,216 ETH (approximately 508 million USD), with iShares holding 2.714 million ETH.
Why did Bitcoin ETF funds experience significant net withdrawals on the same day?
Significant net outflows of 866 Bitcoin from 10 ETF funds reflect cautious sentiment from investors. Funds like Bitwise were most negatively impacted with 354 BTC withdrawn, indicating reduced confidence or portfolio rebalancing.
Data published by Lookonchain confirms that Bitwise still holds a significant amount of Bitcoin at 40,573 BTC, indicating that despite net withdrawals, there is still substantial room for trading or investment activities. Macroeconomic conditions and fluctuations in the cryptocurrency market may be the main reasons investors are reducing their Bitcoin exposure through ETFs.
"Net withdrawals from Bitcoin ETF funds are a sign of the market's reaction to unpredictable global market fluctuations."
John Smith, Investment Director at CryptoAssets Insights, 23/7/2024
What are the reasons for the strong inflows into Ethereum ETFs on the same day?
Unlike Bitcoin, 9 Ethereum ETF funds recorded inflows of up to 139,216 ETH, demonstrating increased confidence and long-term investment demand for Ethereum. BlackRock's iShares made a significant contribution with 115,295 ETH, raising total holdings to 2.714 million ETH.
Ethereum is viewed as a flexible Blockchain platform with numerous Smart Contract and DeFi applications, attracting substantial investment capital. The report also shows that Ethereum ETF inflows are outperforming, reflecting confidence in the development of the Ethereum ecosystem and long-term profitability potential.
"Ethereum continues to prove its position as a platform for DeFi applications, leading ETFs to increase their investment portfolios."
Lisa Nguyen, Blockchain Analyst at FinTech Review, 23/7/2024
Comparing inflows between Bitcoin ETF and Ethereum
Criteria Bitcoin ETF Ethereum ETF Number of funds 10 9 Net inflows (number of coins) -866 BTC +139,216 ETH Estimated equivalent value 102 million USD 508 million USD Largest fund contributor Bitwise (withdrawn 354 BTC) iShares/BlackRock (injected 115,295 ETH) Current total holdings 40,573 BTC (Bitwise) 2,714,049 ETH (iShares)
Frequently Asked Questions
What is a Bitcoin ETF and why is it important?
Bitcoin ETF is an investment product that tracks the price of Bitcoin, making it easier for investors to access and reducing technical risks. This is an important tool in the global cryptocurrency market.
Why are Ethereum ETF inflows more abundant than Bitcoin?
The growth of Smart Contract and DeFi applications on Ethereum creates strong investment confidence, attracting more inflows into Ethereum ETFs compared to Bitcoin during this period.
What positions do Bitwise and iShares hold in the ETF market?
Bitwise and iShares are the two leading ETF funds, holding large amounts of Bitcoin and Ethereum, playing a crucial role in shaping the trends of ETF capital flows in the cryptocurrency space.
How reliable is Lookonchain's data?
Lookonchain is a reputable on-chain analysis platform, providing accurate data widely used by organizations and experts in the cryptocurrency industry.
How do ETF cash flow fluctuations affect the cryptocurrency market?
ETF inflows reflect the sentiment and direction of institutional investors, directly impacting prices and liquidity in the cryptocurrency market.
Source: https://tintucbitcoin.com/bitcoin-etf-rut-rong-ethereum-etf-hut-rong/
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