How Bitcoin, Ethereum ETFs Digest The Crash Which Gave Traditional Finance 'A Taste Of A Regular Day In Crypto'

In a week marked by significant market turbulence, the cryptocurrency exchange-traded fund (ETF) landscape experienced divergent trends on Aug. 6, with Bitcoin BTC/USD and Ethereum ETH/USD spot ETFs moving in opposite directions.

What Happened: This movement comes against a backdrop of assets rallying following a massive sell-off that, according to QCP Capital, gave traditional finance “a taste of a regular day in crypto.”

Bitcoin spot ETFs faced substantial outflows totaling $149 million, while Ethereum spot ETFs bucked the trend with a net inflow of $98.3006 million, according to data from SoSo Value.

These contrasting fund flows occurred as the broader market grappled with heightened volatility, evidenced by the VIX trading above 65%.

Leading the exodus was Fidelity‘s FBTC, with an outflow of $64.48 million, followed by Grayscale‘s GBTC at $32.1841 million, and ARK Invest‘s ARKB at $28.88 million.

Despite these outflows, the total net asset value of Bitcoin spot ETFs remains robust at $51.466 billion.

On the Ethereum side, BlackRock‘s ETHA led the charge with a significant inflow of $110 million, while Fidelity‘s FETH added $22.4894 million.

However, Grayscale‘s ETHE experienced an outflow of $39.7293 million.

The total net asset value of Ethereum spot ETFs stands at $7.06 billion, data shows.

Also Read: Bitcoin, Ethereum Face ‘Random Walk’ Risk, Expert Warns: What Does That Mean?

Why It Matters: Market analytics firm QCP Capital attributes Monday’s market turmoil to a broader sell-off that has since been partially recovered.

They noted that traditional finance markets experienced unusually high volatility, with the VIX trading above 65%.

Looking ahead, QCP Capital anticipates continued selling pressure in the coming days as systematic funds reduce exposure in response to heightened volatility.

They advise investors to monitor Nasdaq, Nikkei and USDJPY closely due to high cross-asset correlations in the near term.

The firm also predicts that the Federal Reserve will likely refrain from emergency rate cuts in September or intermeeting cuts in October to avoid exacerbating market panic.

The broader implications of these trends will likely be a key topic of discussion at Benzinga’s Future of Digital Assets event on Nov. 19.

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