Key Points
- Bitcoin and Ethereum ETFs experienced brief inflows followed by significant outflows.
- The U.S. CPI data influenced these ETF flows, with cryptocurrencies rebounding despite initial declines.
After a period of continuous outflows, Bitcoin (BTC) ETFs saw a temporary resurgence with inflows on the 9th and 10th of September. However, this increase was fleeting.
Bitcoin ETF Experiences Outflow
On the 11th of September, the trend reversed dramatically with net outflows amounting to $43.9 million, as reported by Farside Investors. This sudden change ended a two-day streak of positive inflows, emphasizing the unstable nature of BTC ETF investments in the present market.
Interestingly, BlackRock’s IBIT has been idle with zero flows since the 26th of August, except for a significant outflow of $9.1 million recorded on the 9th of September. Only Fidelity’s FBTC and Invesco’s BTCO have shown positive movement, with inflows of $12.6 million and $2.6 million, respectively, as of the 11th of September.
Ethereum ETF Analysis
In a similar vein, Ethereum (ETH) ETFs reflected the recent fluctuations seen in BTC ETFs. After a period of outflows, ETH ETFs experienced a brief surge with $11.4 million in inflows on 10th September. However, this positive trend was short-lived, as the following day saw a cumulative outflow of $0.5 million.
On the pricing front, both Bitcoin and Ethereum saw declines on 11th September. However, by the 12th of September, both cryptocurrencies rebounded, with BTC gaining 3.3% and ETH rising by 1.58% within a day.
The sudden shift in ETF flows and cryptocurrency prices may be attributed to the recently released U.S. Consumer Price Index (CPI) data. The CPI for August revealed a modest 0.2% increase in consumer prices, bringing the 12-month inflation rate down to 2.5%—the lowest level since February 2021.
Despite this anticipated adjustment, Citi’s analysis highlights that core PCE inflation, a critical factor for Fed policy, remains steady, suggesting a balanced approach to monetary policy in the near term. As noted by Rachael Lucas, a crypto analyst of BTCMarkets, outflows from Bitcoin and Ethereum ETFs are largely a reaction to stronger U.S. economic data and should be seen as a normal part of ETF evolution.
