Bitcoin ETFs have seen a significant outflow of $1.2 billion in just eight days. According to Bloomberg data, between August 30 and September 6, investors pulled their money from 12 spot Bitcoin exchange-traded funds (ETFs) listed in the United States. This marks the longest net outflow streak for these funds since they were listed in January 2024. The timing couldn’t be worse, as Bitcoin itself has been taking a nosedive, dropping 17.28% from its late-August highs to early September lows.
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Investors Feel the Heat as Bitcoin Prices Dip
Why are investors pulling out? For one, Bitcoin’s price performance in September has been historically poor. In just two weeks, Bitcoin dropped from a high of $64,668 on August 26 to a low of $53,491 on September 7. Some crypto enthusiasts even have a name for this: “Rektember,” a not-so-fond reference to the market’s tendency to get “rekt” or destroyed in September. However, there’s still hope in the air. Crypto circles are already looking forward to “Uptober,” expecting prices to rally again next month.
Crypto ETFs Still Dominate Despite Outflows
Despite these rough patches, crypto ETFs are still outperforming other funds. Data from The ETF Store shows that of the over 400 new ETFs launched in 2024, the four biggest were all spot Bitcoin ETFs. Even with these outflows, BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise’s Bitcoin ETF Trust (BITB) are leading the pack. That says a lot about where the market’s sentiment lies. “The next generation of investors could influence the future of crypto,” financial advisor Suze Orman noted in a CNBC interview, believing Bitcoin will still have its day in the sun.
Is Bitcoin Set for a Rebound?
While the short-term outlook seems shaky, many analysts still believe in Bitcoin’s long-term potential. “As younger people make more money, BTC will be one of their investments of choice,” added Orman. The same could be said for Ethereum, as iShares Ethereum Trust ETF (ETHA) became the seventh-largest ETF launch in 2024, surpassing the $1 billion mark in August.
At the time of writing, Bitcoin is sitting at $55,316.67.
