U.S. Spot Bitcoin [BTC] ETFs See Significant Bleed-Out Post-Labor Day, Underscoring Sustained Risk-Off Mode from Investors

After an extended U.S. weekend, the products recorded $288 million in outflows on the 3rd of September.

U.S. spot Bitcoin [BTC] ETFs (exchange-traded funds) continue to experience outflows, indicating a sustained risk-averse stance among investors.

Following an extended U.S. weekend, the products recorded a net outflow of $288 million on the 3rd of September.

The outflows were led by Fidelity, with investors withdrawing $162.3 million from its Bitcoin trust fund. Grayscale and Ark 21Shares followed closely, with $50.4 million and $33.6 million in outflows, respectively.

BTC ETF investors’ risk-averse stance persists

The post-Labor Day outflows amplify the bearish trend observed last week. According to data from Soso Value, the products have seen negative daily outflows in the past five trading days.

The outflows suggest that ETF investors’ risk-averse mode has continued into the new week. Last week, the products recorded a net outflow of $277 million.

BTC’s price has dropped below $60K and weakened further as the risk-off mode persists in the market. At press time, BTC was valued at $56.6K, down over 12% from a recent high of $64K.

However, the low demand from U.S. investors could impact the crypto asset’s price negatively in the short term.

As shown by the Coinbase Premium Index, which tracks investors’ demand for BTC, its price tends to rise when there is high demand from the U.S.

However, the bearish demand (indicated by red) has put BTC under downward pressure since late August. A significant reversal may only occur if demand from U.S. investors recovers substantially.

Meanwhile, most analysts, including QCP Capital, are projecting a weak performance for BTC in September based on historical trends.

However, according to the crypto trading firm, BTC is set to start a strong rally in October and the rest of Q4 based on past patterns and options market data.

“October, however, has the strongest bullish seasonality…This seasonality play could explain the consistent call buying in the vol market (the desk observed another 150x 80k Dec calls lifted in Asia morning).”

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