Crypto Markets Slide as Ethereum ETFs See Record Outflows – Crypto News – Crypto News
Connect with us
Crypto Markets Slide as Ethereum ETFs See Record Outflows Crypto Markets Slide as Ethereum ETFs See Record Outflows

De-fi

Crypto Markets Slide as Ethereum ETFs See Record Outflows – Crypto News

Published

5 months ago

on

Bitcoin slipped below $113,000 as Ethereum ETFs face record daily net outflows amid mixed market sentiment.

Crypto markets dipped on Tuesday as Ethereum exchange-traded funds (ETFs) posted their largest one-day outflows to date, signaling renewed investor caution.

Bitcoin (BTC) is down nearly 2% on the day, trading around $113,200 and extending its weekly losses to about 4%. Ethereum (ETH) has dropped 3.2% in the past 24 hours to about $3,587, bringing its weekly decline to 4%.

Among other large-cap altcoins, XRP has slipped 2.3% to $2.98, while Solana (SOL) is down about 3% today $163, recording a nearly 9% loss on the week.

BTC 24-hour price chart. Source: CoinGecko

The total cryptocurrency market capitalization has fallen 2% on the day to around $3.77 trillion, according to CoinGecko. Trading volume over the same period reached $131 billion.

Over the past 24 hours, more than $363 million in crypto positions were liquidated, according to CoinGlass, with long positions making up the majority at $239 million. ETH led the liquidations with nearly $128 million, followed by BTC at around $60 million, while smaller-cap altcoins accounted for roughly $40 million.

Record ETF Outflows

In the crypto ETF space, Ethereum ETFs recorded their largest-ever single-day net outflows, with approximately $465 million withdrawn on Aug. 4, according to SoSovalue. This comes after ETH ETFs broke their multi-week net inflow streak on Friday with a relatively high net outflow of $152 million.

BlackRock’s ETHA fund led Monday’s outflows, with nearly $375 million pulled. Fidelity’s FETH, Grayscale’s ETHE and the Grayscale Ethereum Mini Trust also recorded outflows of $55 million, about $7 million, and $28 million, respectively.

The outflows come nearly three weeks after the funds recorded their highest daily inflows yet. July was also ETH ETFs’ best month on record, with the products recording net inflows every single trading day except one, July 2, for a total of $5.43 billion over the month.

Meanwhile, spot Bitcoin ETFs also experienced notable net outflows on Monday totalling $333 million, just one day after posting their second-largest single-day outflow since launching in January 2024.

Mixed Investor Sentiment

The market downturn comes amid news that President Donald Trump plans to sign an executive order aimed at protecting crypto firms, individuals, and other institutions from debanking. Debanking refers to the practice of a bank refusing or withdrawing service to a user or firm based on perceived risks.

Earlier today, Trump claimed that JPMorgan Chase and Bank of America – the two largest U.S. banks – had denied him service. “The banks discriminated against me very badly, and I was very good to the banks,” he said during an interview on CNBC’s Squawk Box, adding that “they discriminate against many conservatives.”

Meanwhile, on Monday, blockchain-based lending and tokenization firm Figure Technology Solutions (FTS) confidentially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC), joining the growing wave of crypto-related companies pursuing public listings this year.

Also yesterday, an IPO filing for crypto trading firm Bullish, which owns CoinDesk, was made public, after multiple reports this year that the firm was planning to go public in the U.S.

“The FTS IPO news boosts industry sentiment, but BTC remains under short-term pressure from market volatility and liquidation risks,” analysts from Bitunix said in comments shared with The Defiant.

The analysts explained that investors should closely monitor the $112,000 mark. “A stable hold above it may signal a short-term reversal, allowing for gradual position building. However, a breakdown below $112,000 could trigger a new wave of liquidations,” they added.

Related Topics:
Continue Reading

Trending