U.S.-listed BTC and ETH saw sharp outflows, with bitcoin ETFs breaking an inflow trend
Traders are looking to the possibility of soft U.S. tech earnings as a signal for upcoming volatility in the BTC market.
Both U.S.-listed spot crypto exchange-traded funds (ETFs) recorded outflows on Tuesday as prices pared gains from last week’s run-up to Republican candidate Donald Trump’s speech.
Spot bitcoin ETFs recorded $18 million in net outflows, breaking a four-day streak that saw inflows as high as $124 million.
Grayscale’s IBIT led outflows at $73 million. Products from Fidelity, Ark Invest, Bitwise and VanEck saw outflows ranging from $2 million to $7 million, SoSoValue data shows.
Blackrock’s IBIT was the only ETF that recorded inflows at nearly $75 million.
Elsewhere, ether-tracked ETFs continued a dismal start with nearly $100 million in net outflows on Tuesday, extending a losing streak to four days.
Total assets under management are down nearly $1 billion since the products went live on July 23, SoSoValue data shows.
Grayscale’s ETHE has recorded the most losses at $1.84 billion, while BlackRock’s ETHA leads inflows at $618 million.
BTC surged to over $69,000 last week as Trump took stage at the Bitcoin 2024 conference in Nashville, revealing plans to fire SEC head Gary Gensler and create a strategic Bitcoin reserve if elected.
However, it lost as much as 5% on Monday as the U.S. Marshals Service shifted $2 billion worth of BTC to two new wallets, instilling fears of a looming sell-off.
Meanwhile, traders are largely cautioning of further price volatility as major U.S. technology firms are scheduled to release earnings this week – an event that tends to influence bitcoin prices.
“Election headlines will remain a major focus, but several key macroeconomic events are also on the horizon,” Singapore-based QCP Capital said in a Telegram broadcast Tuesday. “Key events starting with the FOMC meeting on Wednesday, megacap tech earnings (Apple, Amazon, Meta) throughout the week, and unemployment data on Friday.”
“We maintain a range-trading outlook for BTC,” the firm said.