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Despite the recent outflows, Bitcoin ETFs continue to dominate the ETF market.
The United States’ spot Bitcoin exchange-traded funds (ETFs) have not experienced any improvements in their net flows in recent times. Rather than see any such improvements, the funds have seen a combined net outflow of $1.2 billion over the course of the last eight days.
This development means that the Bitcoin ETFs have now witnessed their longest streak of net outflows since they were introduced in January 2024.
According to data released by Bloomberg moments ago, investors took out large amounts of capital from the 12 listed spot Bitcoin ETFs between August 30 and September 6.
Interestingly, the large-scale outflow coincides with a notable downturn in Bitcoin (BTC) price. Although BTC peaked at $64,668 on August 26, it has since tumbled, even as its price fell over 17%, to hit a low of $53,491 on September 7.
September’s Rektember Trend Haunts BTC Prices
Though the price decline of Bitcoin has left some investors wary, many who are familiar with the market are not exactly surprised. This is because, historically, September has always been a challenging month for the crypto market. As a fact, analysts also support the claim.
With digital assets, particularly Bitcoin, showing this pattern of poor performance consistently for several years, the crypto community now famously calls September “Rektember”. The term highlights how September often “wrecks” investor portfolios, with hopes for recovery placed in October.
October or “Uptober”, as it’s otherwise called in the crypto space, is also a month that has historically brought some relief to crypto markets.
Bitcoin ETFs Continue to Dominate Despite Outflows
Interestingly, despite the recent outflows, Bitcoin ETFs continue to dominate the ETF market. But first, it might be worth noting that the market has seen an unprecedented surge in new listings throughout 2024 with no less than 400 new ETFs launched so far this year.
Of all ETFs, four of the largest are spot Bitcoin ETFs. Some of them are BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). Furthermore, data from The ETF Store suggests that 10 Bitcoin-based ETFs are in the top 25 ETFs by inflows.
So, while September continues to weigh heavily on the price of Bitcoin and its related ETFs, many in the financial sector are hopeful for a rebound soon. Moreso, bearing in mind that, October historically favors cryptocurrencies, many are positive that Bitcoin will regain some of its lost value in the coming weeks.
As would be expected, once the BTC price picks up, the ETFs linked to the crypto may begin to see a reversal from their current status, and capital will resume flowing into them.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
