Savannah Fortis10 hours agoiShares BTC ETF investors weather major price drop with zero flowsThe Bitcoin ETF from iShares saw a rough entry into the week, with the asset down by 14%, yet according to market analysis, no one budged.2263 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onAt the market opening on Aug. 5, traders were in for a shock to see that the Bitcoin exchange-traded fund (ETF) managed by iShares (IBIT) was down by 14% after already experiencing a decline of 8% the previous week. Hodlers holding
However, as noted by senior Bloomberg ETF analyst Eric Balchunas, there were $0 inflows, denoting that traders did not budge on their positions. Balchunas compared their unwavering-ness to the “Rock of Gibraltar” and said the industry is “lucky to have them.” Source: Eric Balchunas
While the total outflows for the group of ETFs were down $168 million, it only accounts for 0.3% of the total assets under management (AUM) and one-third of that was from the Grayscale Bitcoin Trust (GBTC).
Balchunas followed up by saying that it’s possible to see more outflows this week, guesstimating that a “couple billion” could leave, even up to 5%.“So far [though] looking much stronger than that. Even I’ve been surprised by the HODL ability of the boomers and equally surprised by the weakness of the natives.”Market reactions
However, the massive outflows from the ETF market have consequential effects on the overall market, tipping the Crypto Fear & Greed Index into the “extreme fear” zone. This is the first time the index has reached this level in two years.
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Bitcoin (BTC) has also seen major fluctuations, crashing to $49,500 on Aug. 5. During this crash, long-term BTC holders sold roughly $600,000 of the cryptocurrency, with the rest of the losses being attributed to short-term holders.
Nonetheless, amid the market turmoil, Bitcoin and Ether (ETH) ETF still recorded almost $6 billion in trading volume on Aug. 5.
Meanwhile, the Ether ETFs were “unfazed” as pointed out by Balchunas on Aug. 6. The Bloomberg analyst highlighted that equity ETFs took in “double the cash” compared to normal in light of what he called the “scariest selloff in quite a while.”Source: Eric Balchunas
Magazine: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’ — X Hall of Flame, Thomas Fahrer# Bitcoin# Bitcoin Price# Ethereum ETF# Bitcoin ETFAdd reaction