The American stock exchange funds for Bitcoin (BTC) and Ethereum (ETH) have had a tough day. On Wall Street, a total of hundreds of millions of dollars flowed out of ETFs, further deepening the gloomy picture of recent weeks. At the same time, the races were also knocked out.
Blood red day for Bitcoin ETFs
For the Bitcoin ETFs, the combined net outflow amounted to $357.6 million. That is the worst daily result since November 18. Fidelity in particular was hit hard with a loss of $230.1 million. Remarkably, BlackRock saw no significant difference between inflows and outflows.
What are spot ETFs?
Spot ETFs are exchange-traded funds that allow investors to invest in Bitcoin or Ethereum through their traditional broker, without having to buy or hold the crypto itself. This is especially important for institutional investors, such as banks and pension funds, who are often not allowed to directly own crypto due to strict rules, but are allowed to own regulated stock market products.
When new money flows into the fund, the manager buys real Bitcoins or ethers to cover the fund. If money flows out, those coins are sold again. This way, the underlying price is closely monitored.
The stock exchange funds have been in weak shape for some time now. In fact, November was the worst month since last January’s launch. Over that month, the funds lost $3.48 billion in capital.
Things are a lot less bad this month, but the signs are still red. To date, the counter has recorded a loss of almost $159 million.
Yesterday, the Bitcoin price fell by more than 5 percent from $90,000 to the lowest point since December 1 of $85,200. It was already the fourth red day in a row.
Ethereum ETFs follow the same path
It wasn’t just Bitcoin that was having a hard time. The Ethereum ETFs ended yesterday with a combined outflow of $224.8 million. That is the worst result since November 20.
Here BlackRock was the biggest loser. His Ethereum fund had to let go of $139.1 million.
The Ethereum price fell more than 8 percent from $ 3,170 to a low of $ 2,900.
Earlier today you could read that XRP simply had a green day on Wall Street. The funds raised $10.89 million, reaching the milestone of $1 billion in net inflows. The Solana funds even grew by $35.20 million.
Source: https://newsbit.nl/bitcoin-en-ethereum-verliezen-meer-dan-een-half-miljard-dollar-op-wall-street/
