September has proven to be a challenging period for the foremost digital currency, Bitcoin [BTC].
Bitcoin has encountered difficulty in surpassing the $60,000 threshold, and Bitcoin exchange-traded funds (ETFs) have encountered obstacles as well.
In recent days, Bitcoin ETFs witnessed withdrawals amounting to $804.8 million, causing ripples among investors and supporters.
Of particular concern is the iShares Bitcoin Trust ETF (IBIT) offered by BlackRock, which has not seen any fresh investments since August 27th.
The fund faced zero new investments on numerous days, including August 27th, 28th, 30th, and September 3rd, heightening worries in the market.
Suspicions Point Towards North Korean Hackers
Meanwhile, U.S. authorities have issued a cautionary alert regarding a potential threat from North Korean hackers, with a focus on crypto entities participating in the expanding Bitcoin ETF landscape.
It is crucial to understand that North Korean hackers, notably the Lazarus Group, have a history of targeting cryptocurrency firms and exchanges.
The FBI has disclosed that cyber criminals from North Korea are concentrating on staff members at decentralized finance (DeFi) and crypto companies.
As per reports, these wrongdoers are utilizing sophisticated “social engineering campaigns” that are hard to detect.
This warning has prompted apprehensions about the sustainability of the Bitcoin ETF sector as it grapples with financial and cybersecurity impediments.
Shift in Investor Interest for IBIT
Nevertheless, it should be noted that IBIT has amassed around $21 billion in net inflows since its inception on January 11th.
Remarkably, on July 22nd, IBIT received a substantial inflow of $500 million, marking its largest inflow since March 13th, according to SpotOnChain data.
This shift highlights the varying appeal of the ETF to investors over time, reflecting the changing dynamics and mood of the market.
Outflow Trend Continues for Ethereum ETFs
In contrast, Ethereum [ETH] ETFs have maintained a trend of consistent outflows, with sporadic instances of inflows.
During the same period scrutinized for Bitcoin ETFs—from August 27th to September 4th—ETH ETFs experienced outflows on August 27th and 29th, as well as September 3rd and 4th.
On August 30th and September 2nd, there were no new investments recorded in the ETFs.
The only noteworthy inflow transpired on August 28th, when ETH ETFs documented a modest net inflow of $5.9 million, as per Farside Investors.
Similarly, BlackRock’s Ethereum ETF encountered mostly stagnant activity in recent weeks, echoing the trend observed with BlackRock’s Bitcoin ETF.
Despite the recent turbulence, ETF expert Eric Balchunas remains optimistic, foreseeing brighter prospects ahead.