Investors have removed more than 1 billion dollars in six days from so -called spot ETFs. The outflow shows that the uncertainty in the financial markets is increasing and that optimism about the effect of interest reductions is decreasing.
Six days in a row money out
According to figures from Dataplatform Sosovalue, a total of $ 1.04 billion has been removed from these funds in the last six trading days.
On Friday alone it was about $ 446.7 million. Last Monday another $ 96.7 million went out. The BlackRock (ETHA) fund in particular experienced a major outflow, while the funds of Fidelity and Grayscale showed small flows.
What are Ethereum Spot ETFs?
ETF stands for Exchange-Traded Fund, or an investment fund that is traded on the stock exchange, just like a share. A spot ether ETF immediately follows the course of the Crypto currency Ether (ETH). For many investors, that is a simple way to invest in crypto without having to buy and store the coin itself.
Doubt about interest rates
The sales wave is related to the expectations around the US central bank, the Federal Reserve. Many investors counted on the fact that interest rates would boost the economy and thereby also support the cryptomarket.
Yet economists warn that lower interest rates do not automatically ensure more growth. “Lower interest rates can, on the contrary, print pension income and affect entrepreneurial confidence,” says David Kelly, chief economist at asset manager JPMorgan Asset Management.
Defensive attitude on markets
The cautious mood is also visible on other markets:
- American state rates hardly move.
- The dollar remains stable.
- Gold rises in value, a classic sign that investors are looking for the safe haven.
In the meantime, the Ethereum course is just above $ 4,300, with resistance around $ 4,500. Bitcoin (BTC) also moves in a similar pattern, with a lot of commercial activity between 108,800 and 114,200 dollars.
Bitcoin funds positive
Strikingly enough, Spot Bitcoin ETFs had a strong intake. On Monday there was 368 million dollars in new capital, after a short outflow in the days before. With this, the total investments in Bitcoin funds grew again to $ 145 billion.
For ordinary savers and pension funds, ETFs are often the only way to invest in crypto. Large outlines or incoming therefore give a good picture of what the wider market thinks about the future of digital coins. The current movement shows that investors are becoming more careful with Ether, while Bitcoin is currently enjoying more confidence.
Source: https://newsbit.nl/ethereum-etfs-verliezen-ruim-1-miljard-door-twijfels-over-renteverlagingen/
