In the wake of the price drop, the value of assets under management in spot Bitcoin ETFs is now at its lowest level since May. Let’s take a closer look at these outflows, which are also weighing on ETFs for other cryptocurrencies.
The value of assets under management in Bitcoin ETFs is in free fall
No crypto investor has failed to notice that prices are falling. In this context, ETFs are also feeling the pinch, with assets under management (AUM) in free fall.
Last Thursday, November 13, spot Bitcoin ETFs even experienced the second worst day in their history, with nearly $870 million in net outflows. After reaching an all-time high (ATH) of $169.54 billion on October 6, AUM has now fallen 28.62% to $121 billion, which is the lowest level since May 8:
In BTC equivalent, however, it should be noted that this decline is more moderate, at 2.78%, with AUM now equivalent to 1.316 million bitcoins. Since the beginning of the month, these ETFs have nevertheless suffered nearly $2.6 billion in outflows, with only three days of gains, making this the worst monthly start for these investment vehicles.
A widespread trend
The situation is no better for spot Ethereum ETFs. With AUM at $18.76 billion, this represents a low since July 18, as well as a 41.43% decline from the high on October 6.
What’s more, since the beginning of November, Ethereum ETFs have had only one day of positive net inflows, with the rest showing losses, except for November 10, which maintained the status quo.
We can also take a look at altcoin ETFs such as those on SOL, XRP, LTC, and HBAR. So far, they have only experienced one day of losses, which occurred on November 14 on Canary’s HBR.
However, this does not necessarily mean that adoption is on the horizon. There have been many days with zero gains, and when volumes are positive, they are much less significant than for BTC and ETH.
Looking at SOL ETFs, which are the most popular category among altcoins, the value of assets under management for Bitwise, Grayscale, and VanEck products is currently only $513.48 million.
While ETFs have helped drive prices in the ecosystem over the past two years, particularly for BTC, it remains to be seen how influential they will be in the event of a bear market. It should be noted that to date, nearly 88% of Bitcoin ETF liquidity is concentrated in BlackRock, Fidelity, and Grayscale ETFs, with BlackRock’s IBIT accounting for 60% of its category.
