BlackRock and Fidelity Face ETF Outflows as Bitcoin and Ethereum Markets Weaken

The exchange-traded fund (ETF) market for Bitcoin (BTC) and Ethereum (ETH) recently experienced a notable downturn, as these leading cryptocurrency funds faced two consecutive days of significant net outflows. This marks a shift toward more conservative strategies among prominent asset management firms like BlackRock and Fidelity, organizations that have historically bolstered the ETF market.

Fidelity, in particular, saw a steep daily outflow of $13.9 million (approximately 19.4 billion KRW) across its ETF products, while BlackRock’s ETF inflows remained minimal during this downturn.

Bitcoin ETF Market: A Deep Dive Into Recent Outflows

Data published by Passiv Investors on October 23 (local time) revealed that Bitcoin ETFs collectively reported a cumulative net outflow of $103 million (about 143.5 billion KRW). Fidelity’s products led the exodus, with its Bitcoin ETF (FBTC) recording a staggering outflow of $75.6 million (approximately 104.6 billion KRW). Other key contributors to this decline included Bitwise and ARK Invest.

Here are the notable Bitcoin ETF outflows:

• Fidelity FBTC: -$75.6 million (approximately 104.6 billion KRW)
• Bitwise Bitcoin Strategy ETF (BITB): -$12.8 million (approximately 17.9 billion KRW)
• ARK Invest ARKB: -$27.9 million (approximately 38.9 billion KRW)

On the flip side, only marginal inflows were recorded during this slump. BlackRock’s iShares Bitcoin Trust (IBIT) attracted inflows of $2.5 million (approximately 3.4 billion KRW), while Invesco’s BTC ETF (BTCO) managed $10 million (approximately 13.9 billion KRW). However, these moderate inflows were not sufficient to offset the broader market’s overall outflow trend.

Ethereum ETFs: Outflows Reach Critical Levels

Ethereum ETFs also experienced a significant downturn, collectively shedding $140.8 million (approximately 194.6 billion KRW) in outflows. Fidelity once again was a leading player in this market contraction.

Notable Ethereum ETF outflows included:

• Fidelity Ethereum ETF (FETH): -$63.4 million (approximately 87.7 billion KRW)
• Bitwise Ethereum Strategy ETF (ETHW): -$23.9 million (approximately 33.1 billion KRW)
• Grayscale Ethereum Trust (ETHE): -$17.1 million (approximately 23.6 billion KRW)

A lukewarm performance was seen among other Ethereum ETFs. For instance, BlackRock’s Ethereum ETF (ETHA) recorded neither inflows nor outflows, reflecting stagnant investor interest. More broadly, there were no Ethereum ETFs that reported any inflows for the day.

Market Insights: Caution Amid Macroeconomic Pressures

Market insiders suggest that this widespread shift to net outflows, encompassing both BTC and ETH ETFs, highlights a mixture of short-term profit-taking and growing caution about macroeconomic uncertainties. A financial analyst noted, “The simultaneous withdrawals from major products, including those managed by large-scale asset managers such as Fidelity and BlackRock, indicate a conservative tone dominating institutional sentiment. Investors appear to be re-evaluating risk amid global economic pressures.”

Price Trends: Bitcoin and Ethereum Reflect Investor Sentiment

As of October 24 (Korea Standard Time), the broader cryptocurrency price trends mirrored this cautious sentiment. Data from CoinMarketCap showed Bitcoin trading at $29,798, marking a 0.41% decline from the previous day. Ethereum was also down, trading at $1,643, a 0.99% drop. These price movements underscore the broader decline in market confidence.

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