Spot Bitcoin exchange-traded funds (ETFs) broke a six-day net outflow streak on Monday, recording $219 million in inflows.
ETF data platform SoSoValue reported a rebound for spot Bitcoin (BTC) ETFs on Monday, reflecting a change in sentiment after six days of net outflows.
The outflow streak began on Aug. 15 and continued until Friday, with the largest outflow of $523.31 million occurring on Aug. 19, followed by $311.57 million on Wednesday.
This series of outflows followed a Bitcoin market correction after it hit record highs. On Aug. 14, CoinGecko data indicated that Bitcoin reached a new all-time peak of $124,128. Since then, it had decreased by 11% to $110,186.
Fidelity, BlackRock spearhead spot Bitcoin ETF recovery
Fidelity and BlackRock ETFs were at the forefront of the recovery on Monday, driving most of the day’s net inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led with inflows of $65.56 million.
BlackRock’s iShares Bitcoin Trust (IBIT) closely followed with $63.38 million, while ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB) contributed $61.21 million.
Other issuers had smaller but still positive contributions to the inflows. Bitwise’s BITB reported $15.18 million in net inflows, while Grayscale’s Bitcoin Trust (BTC) and VanEck’s HODL fund noted inflows of $7.35 million and $6.32 million, respectively.
Related: Bitcoin is rallying due to US deficit concerns, not hype: Analyst
ETF sell-off driven by “polarized” investor sentiment
On Monday, CoinShares’ head of research, James Butterfill, noted that recent outflows from crypto funds represented their largest losses since March. Butterfill attributed the sell-off to the “increasingly polarized” investor sentiment regarding US monetary policy.
He stated that the bearish outlook on the Federal Reserve’s stance led to $2 billion in outflows. However, sentiment changed following Federal Reserve Chair Jerome Powell’s speech, which was largely seen as “more dovish than expected.”
On Saturday, crypto sentiment shifted back to greed as the market surged after Powell hinted at the possibility of a rate cut in September.
The Crypto Fear & Greed Index, a well-known metric for assessing market sentiment, climbed to a “Greed” score of 60, indicating that market participants were more willing to take risks and confident in making purchases.
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