US Spot Bitcoin ETFs Record $148 Million Net Outflows as Ether ETFs Gain $98 Million

US Spot Bitcoin ETFs saw massive outflows on Tuesday, coinciding with Bitcoin's price slump. Farside Investors' data reveals that Spot Bitcoin ETFs recorded $148.5 million in net outflows, with Fidelity leading the pack at $64.48 million.

Bitcoin ETF Flow (US$ million) - 2024-08-06

TOTAL NET FLOW: -148.6
(Provisional data)

IBIT: 0
FBTC: -64.5
BITB: 0
ARKB: -28.9
BTCO: 0
EZBC: -23
BRRR: 0
HODL: 0
BTCW: 0
GBTC: -32.2
BTC: 0

For all the data & disclaimers visit:https://t.co/4ISlrCgZdk

- Farside Investors (@FarsideUK) August 7, 2024

Grayscale's GBTC followed with outflows of $32.18 million, while Ark Invest and 21 Shares' ARKB noted net outflows of $28.88 million. Remarkably, BlackRock's IBIT, the most prominent Spot BTC ETF based on net value, did not record any flows.

The Spot Bitcoin ETFs recorded a net trading volume of $2.2 billion. Since launching in January 2024, they have attracted a combined net inflow of $17.19 billion.

Spot Bitcoin ETFs Bleed While Ether ETFs Record Massive Inflows

While the Spot Bitcoin ETFs seem to be losing steam, US Spot Ethereum ETFs recorded a net inflow of $98.3 million despite the crypto market retracement.

BlackRock's ETHA recorded the most significant inflow at $109.89 million, while Fidelity's FETH attracted $22.49 million in inflows.

Grayscale's mini trust ETF had an inflow of $4.7 million, while Franklin Templeton's was below $1 million inflow. On Tuesday, the ETH ETFs recorded a net trading volume of $330.13 million. US Spot Ether ETFs have recorded $363 million in net outflows since listing on July 23.

Ghost Month Theory Likely Responsible for Crypto Market Retracement

The Monday global market downturn affected crypto and all crypto-related products, such as ETFs. Bitcoin took a nosedive, hitting a multi-month low below $50,000 on Monday.

Swing trader Honey highlights one possible factor behind the downturn. Honey says the Ghost Month on the Chinese Lunar calendar likely contributes to this decline. This year's ghost month is from August 4 to September 7, and historical data reveals that BTC struggles during this period.

2/ In 2017, ghost month started on 22 Aug and ended on 19 Sep. The price of #Bitcoin fell almost 40% from $5000 to $3000. pic.twitter.com/nphhWMkiNv

- Honey (@honey_xbt) September 14, 2023

While Ghost Month does not necessarily affect the financial markets, it influences investors' trading strategy and psychology.

According to swing trader Honey, the Ghost Month of 2017 started on August 22 and ended on September 19 and forced BTC down nearly 40% from $5000 to $3000. From 2018 to 2023, a similar decline occurred for Bitcoin in August and September.

8/ This year, in 2023, ghost month started on 16 Aug, and guess what, we dumped the next day from $29,000 to $25,000.

The good news is that it's ending today on 14 Sep and if we analyze, #Bitcoin has dumped around 15% this month. pic.twitter.com/cErvR1brOK

- Honey (@honey_xbt) September 14, 2023

This confirms that traders often make decisions driven by emotions regardless of the market cycle.

However, with Bitcoin's recent recovery, market sentiment is turning positive. According to crypto analyst Rekt Capital, Bitcoin will need a weekly close above $59110 later this week to regain the $59,108 support level.

#BTC

It has happened

Now, Bitcoin will need to Weekly Close above ~$59110 later this week to perform a successful reclaim of the bottom of the black channel as support in an effort confirm a return into the pattern$BTC #Crypto #Bitcoin https://t.co/mzrq7Ocf9y pic.twitter.com/JXPmwzeTWP

- Rekt Capital (@rektcapital) August 7, 2024

Also, other factors, such as fear of recession and the possibility of higher rates from the US Federal Reserve, likely affected BTC's price.

However, the MVRV-Z score reveals a positive outlook for Bitcoin. It shows that Bitcoin is still undervalued and not yet at its cycle peak.

The MVRV-Z measures an asset's market value divided by its realized value. If the MVRV-Z ratio is above 3.7, the asset is overvalued. However, a ratio below one shows undervalues and, based on market behavior, a possible recovery ahead.

Bitcoin's MVRV-Z at 1.40 suggests the digital asset is undervalued, so there's still room for growth. Therefore, Bitcoin will likely rally again once the buyers regain market control. Spot BTC ETFs will likely record more inflows, surpassing outflows if Bitcoin rallies again.

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