Key Takeaways
- • U.S. spot Bitcoin ETFs recorded cumulative net outflows of $907.3 million over the two weeks ending the 16th, according to Faside Investors data cited by Maeil Business Newspaper (MK), roughly 1.2 trillion won at the cited exchange rate of 1,328 won per dollar.
- • Outflows totaled $678.9 million from the 5th to the 9th and $228.4 million from the 12th to the 16th, with $82.4 million withdrawn on the 16th alone.
- • Spot Ethereum ETFs posted $955.1 million in cumulative net outflows over three consecutive weeks, from the 28th of the prior month through the 2nd of this month.
- • Hotter-than-expected U.S. September CPI of 3.7% year-on-year, versus 3.6% expected, raised concerns about further Federal Reserve rate hikes and weighed on risk-asset appetite.
- • CoinMarketCap's crypto fear and greed index fell to 48, down from 55 last week and 72 last month, signaling weakening investor sentiment.
Summary
About 1.2 trillion won in capital has been withdrawn from U.S. spot Bitcoin exchange-traded funds over the past two weeks, according to data from Faside Investors reported by Maeil Business Newspaper. Net outflows totaled $907.3 million, comprising $678.9 million from the 5th to the 9th and $228.4 million from the 12th to the 16th. Applying the cited exchange rate of 1,328 won per dollar, the total equates to approximately 1.2055 trillion won. On the 16th alone, net outflows reached $82.4 million.
The pattern was not uniform. On the 13th, Bitcoin ETFs took in $175.7 million in net inflows and Ethereum ETFs $24.8 million, but subsequent sessions reversed that trend and weekly totals remained net negative.
Spot Ethereum ETFs experienced a more sustained run of redemptions. Net outflows persisted for three consecutive weeks, from the 28th of the prior month through the 2nd of the current month, and reached a cumulative $955.1 million (about 1.2722 trillion won) by the 16th.
The article links the withdrawals to macroeconomic conditions. The U.S. Consumer Price Index rose 3.7% year-on-year in September, above market expectations of 3.6%. That reading increased the perceived likelihood of an additional Federal Reserve rate hike. Higher policy rates can make interest-bearing assets such as bonds relatively more attractive than volatile risk assets like Bitcoin, and the prospect of tighter financial conditions has encouraged investors to reduce exposure.
Sentiment indicators corroborate the shift. CoinMarketCap's virtual asset fear and greed index stood at 48 on the day of reporting, down from 55 a week earlier and 72 a month earlier, a 24-point decline over the month that the article characterizes as an easing of optimism across the virtual asset market.
The pattern was not uniform. On the 13th, Bitcoin ETFs took in $175.7 million in net inflows and Ethereum ETFs $24.8 million, but subsequent sessions reversed that trend and weekly totals remained net negative.
Spot Ethereum ETFs experienced a more sustained run of redemptions. Net outflows persisted for three consecutive weeks, from the 28th of the prior month through the 2nd of the current month, and reached a cumulative $955.1 million (about 1.2722 trillion won) by the 16th.
The article links the withdrawals to macroeconomic conditions. The U.S. Consumer Price Index rose 3.7% year-on-year in September, above market expectations of 3.6%. That reading increased the perceived likelihood of an additional Federal Reserve rate hike. Higher policy rates can make interest-bearing assets such as bonds relatively more attractive than volatile risk assets like Bitcoin, and the prospect of tighter financial conditions has encouraged investors to reduce exposure.
Sentiment indicators corroborate the shift. CoinMarketCap's virtual asset fear and greed index stood at 48 on the day of reporting, down from 55 a week earlier and 72 a month earlier, a 24-point decline over the month that the article characterizes as an easing of optimism across the virtual asset market.
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