Key Takeaways
- Bitcoin ETFs show slowing outflows while Ethereum ETFs attract inflows.
- The Crypto Fear & Greed Index falls to a two-year low.
- Investors are showing mixed sentiment towards Bitcoin and Ethereum.
YEREVAN (CoinChapter.com) — On August 5, 2024, Bitcoin ETFs showed signs of slowing outflows. The Grayscale Bitcoin Trust (GBTC) and ARK 21Shares Bitcoin ETF continued to experience outflows, but the pace was slower compared to previous days. Despite significant withdrawals, the decline was less severe.
At the same time, some ETFs have started to attract new investments. The Grayscale Bitcoin Mini Trust received $21.81 million in inflows on August 5. Additionally, the VanEck Bitcoin ETF and Bitwise Bitcoin ETF saw inflows of $3 million and $2.9 million, respectively. These inflows suggest that some investors are beginning to re-enter the market, possibly seeing opportunities in the current conditions.
The data highlights a complex market sentiment. Overall outflows continue, but the presence of inflows in certain funds points to a potential stabilization.
Crypto Fear & Greed Index Hits Two-Year Low
The Crypto Fear & Greed Index dropped to 17 out of 100, its lowest level since July 12, 2022, reflecting a significant shift in market sentiment. Just a week earlier, on July 29, the index was at 67, indicating a drastic change in investor mood. This drop in sentiment aligns with the recent market downturn, despite some inflows in certain Bitcoin ETFs that suggest varied investor behavior.
Ethereum vs. Bitcoin ETF Flows
Comparing the flows of Ethereum and BTC ETFs, Ethereum ETFs saw more positive movements. BlackRock’s Ethereum Trust (ETHA) led with significant inflows, followed by Fidelity’s Ethereum Trust (FETH) and VanEck’s Ethereum ETF (ETHV). While there were some outflows from the Grayscale Ethereum Trust (ETHE), the overall trend for Ethereum ETFs was positive.
In contrast, Bitcoin ETFs faced more substantial outflows, particularly from major funds like GBTC and ARK 21Shares. Although there were some inflows, the general trend leaned towards outflows.
While the market for BTC ETFs is seeing a reduction in outflows, Ethereum ETFs are attracting more new investments. This suggests differing perspectives on the two leading cryptocurrencies, with some investors finding more opportunities in Ethereum at the moment.
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