ETF Market Seesaws Amid Crypto Milestones and Investor Caution

Trend:

Over the last seven weeks, ETF movements have shown significant volatility. Initially, there were consistent outflows of -15M in both the fifth and sixth weeks. This was followed by a modest recovery, with inflows of +3M in the fourth and third weeks. The trend continued with a more substantial inflow of +12M two weeks ago. However, last week saw a reversal with outflows of -15M. This week, the market has bounced back slightly with an inflow of +15M.

The news background for the last week includes significant events such as the launch of the first Bitcoin ETF on Australia's ASX, which marks a major milestone for the cryptocurrency market. Despite this positive development, Bitcoin ETFs experienced a notable shift, shedding $621 million worth of assets last week, reflecting the volatile nature of crypto investments. Additionally, the Federal Reserve's decision to leave interest rates unchanged has likely influenced investors to reduce their exposure to fixed-supply assets like Bitcoin ETFs.

This week's inflow of +15M indicates a recovery after last week's decline, suggesting a cautious return of investor confidence. The flow of funds has shifted from outflows to inflows, showing a stabilization trend. This week's data implies that investors are slowly regaining trust in ETFs, possibly influenced by the positive news from Australia and the anticipation of Ethereum ETFs.

Biggest Gainer: IBIT [$45M].

Biggest Loser: FBTC [$5M].

Day with the Highest Inflow: Monday saw the highest inflow with a total amount of USD 400 million. On this day, the overall situation of the ETF market was characterized by significant inflows across various funds. Notably, IBIT recorded an inflow of +50M, BTCO saw +45M, and GBTC had +52M, indicating strong investor interest. Conversely, some funds like EZBC and BTCW experienced outflows of -75M each, showing a mixed sentiment among investors.