On August 5, the Crypto Fear & Greed Index plummeted to a score of 17 out of 100, signaling the lowest sentiment since July 12, 2022. This sharp decline in market confidence coincided with a notable $168 million withdrawal from spot Bitcoin ETFs, reflecting growing uncertainty among investors.
Data from Farside Investors highlighted that the Grayscale Bitcoin Trust and the ARK 21Shares Bitcoin ETF were the primary contributors to these outflows, with withdrawals amounting to $69.1 million and $69 million, respectively. These significant outflows indicate a broader trend of caution in the cryptocurrency market, as investors reassess their positions amid fluctuating prices and market conditions.
Despite the overall negative sentiment, a few ETFs saw positive inflows, suggesting some investors still see potential in Bitcoin. The Grayscale Bitcoin Mini Trust, VanEck Bitcoin ETF, and Bitwise Bitcoin ETF recorded inflows of $21.8 million, $3 million, and $2.9 million, respectively. These inflows, though modest, indicate that there are pockets of optimism in the market, with some investors taking advantage of lower prices to increase their holdings.
Meanwhile, BlackRock’s iShares Bitcoin Trust reported no inflows or outflows on the same day, remaining neutral amid the market turbulence. This stability contrasts with the broader trend of significant outflows and highlights the varied responses of different ETFs to the current market conditions.
