U.S. spot Bitcoin and Ethereum ETFs suffered nearly $1 billion in net outflows while Bitcoin as low as $112,500, raising questions about investor confidence.
Key Takeaways:
- Nearly $1 billion exited U.S. spot Bitcoin and Ethereum ETFs, experiencing the second-largest day of redemptions this month.
- Bitcoin trades near $113.7K as of writing, down approximately 1-2% over the past 24 hours, with volatile swings between $112.5K and $115.8K.
- Indicators like SOPR suggest short-term holders may be accumulating during the dip, hinting at a possible near-term rebound.
On Tuesday, August 19, 2024, U.S spot Bitcoin and Ethereum ETFs experienced a massive outflow totaling to $1 billion in value. According to Farside Investor’s data of Bitcoin and Ethereum ETF flow, U.S. spot Bitcoin ETFs saw about $523 million in net outflows, excluding Invesco’s BTCO data. Fidelity’s FBTC led with $246.9 million withdrawn, followed by Grayscale’s GBTC at $115.5 million. Meanwhile, Ethereum ETFs saw $422.3 million pulled, notably from Fidelity’s FETH (–$156.3M) and Grayscale’s ETHE (–$122M).
An X (formerly Twitter) post from Crypto Insights highlights that the majority of $1 billion U.S. spot outflows were mainly from BTC and ETH ETFs, where SOL ETFs recorded zero pull within the day.
These outflows mark the second-largest redemption day this month for both asset classes, signaling a sharp shift in investor sentiment after recent volatility.
Bitcoin Experiences Volatility as Market Cap Retreats
ETF outflows made a significant effect to the broader crypto market, with Bitcoin falling series of record highs above $124K last week to test lows near $112K. The global market cap slipped below $4 trillion, which demonstrates the impact of institutional moves in ETFs to the price pressure across the crypto market.
Real-Time Market Data Shows Volatility Intensifying
As of writing (1:00 PM UTC), Bitcoin (BTC) trades at around $113,749 dropping 1.4% over the past 24 hours while accounting for an approximate intraday lows near $112,521 and highs around $115,789, according to the latest market statistics from TradingView and CoinGecko.
These swings underline fragile market sentiment, with leveraged long liquidations exceeding $113 million as BTC dipped under $113K.
Short-Term Holders Signal Accumulation Trend
In spite of the pullback, on-chain metrics exhibit growing conviction among short-term holders. Data from Glassnode, as cited by BeInCrypto, highlights short-term holders, those who have BTC holdings for under ~155 days, have increased their assets by over 43,000 BTC in the past week, achieving a 3-month high in supply. Even the prices continues to decline, these holders are still buying, often at a loss, which is a pattern historically associated with local market bottoms. The SOPR measure remains below 1, reinforcing this bottom-forming signal.
Market Outlook: $112K Support in Focus
The noticeable Bitcoin and Ethereum ETF outflow from totaling to $1B, along with BTC’s noticeable price breakdown to the $113K to $114K range, signifies a surge in investor caution. Meanwhile, the accumulation trend among short-term holders and persistently low SOPR values is a sign of active interest from institutions and retailers, potentially paving the way for a price rebound, particularly if key support levels like $112K hold.
This upcoming days may result to a turning point. A decisive drop below support risks further downside toward $110K, while renewed ETF inflows could help rebuild momentum.
Summary
U.S. spot BTC/ETH ETFs saw nearly $1B in net outflows—this month’s second‑largest redemption day—while BTC whipsawed between $112.5K–$115.8K and the total crypto market cap slipped below $4T. Short‑term holder metrics (rising balances; SOPR < 1) suggest dip‑buying into weakness, a pattern often seen near local bottoms.
Near term, $112K is the key support to watch: holding that level alongside stabilizing ETF flows could set up a rebound; a clean breakdown risks a move toward $110K. Leverage‑driven liquidations (>$113M) underscore shaky sentiment until flows and macro tone improve.
