Bitcoin and Ethereum ETFs Bleed $439M as Investors Play It Safe in September 2024
- Why Are Crypto ETFs Hemorrhaging Funds This Week?
- Short-Term Pain for Long-Term Gain?
- What’s Next for Bitcoin and Ethereum?
- FAQ: Your Burning Questions Answered
The crypto market kicked off September 24, 2024, with a cautious tone as Bitcoin and Ethereum ETFs saw massive outflows totaling $439 million. Fidelity’s FBTC led the exodus with $276.7M withdrawn, while Ethereum ETFs faced $76M in redemptions. Analysts blame short-term profit-taking ahead of key inflation data—but is this just a hiccup in the bull run? Let’s break it down.
Why Are Crypto ETFs Hemorrhaging Funds This Week?
Monday’s $439M ETF outflow wasn’t your average sell-off. Bitcoin ETFs shouldered 83% of the damage ($363M), with Fidelity’s FBTC bleeding $276.7M alone—equivalent to 63% of total outflows. ARK 21Shares’ ARKB lost $52.3M, while Grayscale’s GBTC saw another $24.6M exit. ethereum ETFs fared slightly better but still coughed up $76M, led by Fidelity’s FETH ($33.1M) and Bitwise’s ETHW ($22.3M).
Oddly enough, prices barely flinched. Bitcoin inched up 0.14%, while Ethereum crawled 0.03% higher—like watching a heavyweight boxer tip-toe around the ring. This suggests the selling pressure came from tactical repositioning rather than panic, as noted by BTCC’s on-chain analyst:
Short-Term Pain for Long-Term Gain?
Glassnode’s weekly report framed this as classic "buy the rumor, sell the news" behavior. bitcoin had rallied ahead of the Fed’s September policy update, only to face profit-taking once the event passed. Three factors amplified the pressure:
- Sluggish spot demand: Buyers stepped back after the Fed decision
- Futures unwinding: $184.6M in losses from new whale wallets
- ETF slowdown: A 72-hour pause in inflows post-announcement
Data from CryptoQuant reveals 30,000 BTC ($3.39B at $113k/BTC) moved to exchanges at a loss—yet prices held NEAR short-term holders’ break-even point. As one trader quipped on X:
What’s Next for Bitcoin and Ethereum?
Dean Chen from Bitunix outlined two scenarios:
| Condition | Bitcoin Target | Ethereum Target |
|---|---|---|
| ETF inflows resume in 3 days | $113,000+ | $4,200 |
| Outflows continue | $108,000 | $3,900 |
The wildcard? Friday’s PCE inflation data. A soft print could reverse flows instantly, while hot numbers might extend the ETF exodus. As of now, Bitcoin trades at its realized price for short-term holders—a level that’s historically triggered bounces or accelerated selloffs depending on hold.
FAQ: Your Burning Questions Answered
Which Bitcoin ETF lost the most money?
Fidelity’s FBTC bled $276.7M—enough to buy 2,450 BTC at current prices.
Are Ethereum ETFs in trouble?
Not necessarily. The $76M outflow represents just 1.2% of ETH ETF AUM, suggesting moderate profit-taking rather than capitulation.
Should I sell my crypto holdings?
This article does not constitute investment advice. That said, history shows September often brings volatility before Q4 rallies.
