Bitcoin ETF outflows rise: Could ETH ETFs be the next safe bet?

• Bitcoin ETFs face significant outflows, indicating growing caution in the market.
• Ethereum ETFs show mixed performance with recent inflows amid ongoing skepticism.

The Bitcoin [BTC] ETF market has recently shifted into bearish territory, as evidenced by a series of outflows spanning from the 26th to the 30th of August.

Bitcoin ETF analyzed

According to Farside Investors, this four-day period saw a substantial net outflow of $277 million from various BTC ETFs.

Notably, ARK Invest and 21Shares’ ARKB experienced significant withdrawals totaling $220 million, while Grayscale’s GBTC faced a surge in outflows amounting to $119 million.

Even BlackRock’s IBIT, which had previously seen positive inflows, reported zero flows on three out of four days, with flows stagnating at $13.5 million on 29th August.

This trend underscores a growing cautious sentiment in the Bitcoin ETF sector.

Community remains positive

However, despite the recent downturn in Bitcoin’s performance, many industry execs remain optimistic about its future.

Remarking on the same, Chip from onthechain.io took to X to express this sentiment, and said,

“I don’t see Bitcoin disappearing anytime soon, especially with the solid support it has right now.” 

Here he highlighted how the introduction of BTC ETFs has strengthened Bitcoin’s standing in the financial industry.  

However, he also pointed out of word of caution and added, 

“Still, as the market changes and new technologies arise, Bitcoin might eventually lose some of its appeal in the long run.” 

Ethereum ETF explained

In contrast to Bitcoin ETFs, Ethereum [ETH] ETFs have demonstrated a more stable performance.

Despite some outflows, totaling $12.6 million during the observed period, Ethereum ETFs have shown signs of recovery.

Grayscale’s Ethereum ETF (ETHE) experienced a notable outflow of $27.86 million.

However, BlackRock’s ETHA and Grayscale’s Mini Ethereum Trust reported positive momentum, with inflows of $8.4 million and $3.57 million, respectively, suggesting a cautious yet optimistic outlook for Ethereum in the ETF market.

Despite recent inflows, skepticism remains about the potential of Ethereum ETFs, as highlighted by TourBillion who said,

“Ethereum is just hanging on hopeium.” 

Impact on price

Meanwhile, despite recent price upticks for both Bitcoin and Ethereum, with gains of 0.42% and 1.82% respectively, a deeper look at Santiment data reveals underlying bearish sentiment.

AMBCrypto’s analysis of the two tokens indicates that, although prices are rising, the Relative Strength Index (RSI) for both cryptocurrencies remains below the neutral level.

Source: Santiment

This suggests that the market sentiment is still cautious and may take time to shift towards a more bullish outlook.