A very negative day for Bitcoin and Ethereum ETFs. Together, the two categories of products lost nearly $1 billion in capital, with significant outflows across almost all products—except for one of BlackRock’s.
However, this capital outflow—rather than confirming a trend reversal—is, in these proportions, a sign of a risk-off phase, meaning a reduction in exposure to riskier assets. This was also evident on both the NASDAQ and the NYSE.
ETFs: a bad day, but following Wall Street 📉
Anyone looking at ETF numbers today without adding context might believe that Wall Street’s schemes are behind yesterday’s poor performance.
If Wall Street was the one pushing these assets so high in recent months, then it must be Wall Street itself dragging them down today. That’s not exactly the case—or at least, there’s no manipulation at play.
The tensions around Jackson Hole, combined with last week’s excessive enthusiasm over rate cuts, created the perfect conditions for a correction—but one that says little about the overall trend.
The real ETF numbers
How did ETFs perform yesterday? Badly overall, with only BlackRock’s holding up.
As for Ethereum ETFs:
Even if negative, Ethereum’s performance was slightly better than Bitcoin’s, highlighting $ETH’s relative strength at this stage.
Ethereum also continues to attract major purchases from listed companies, such as Tom Lee’s Bitmine.
The situation isn’t proceeding linearly (some are beginning to face issues with mNAV), but this won’t stop the trend of growing interest in the non-Bitcoin crypto sector.
Looking ahead, the approval of several more ETF products between September and October will be crucial. The big question: Will they have the same impact as ETH ETFs? 🚀
