The month of September has presented challenges for the primary cryptocurrency, Bitcoin [BTC].
Bitcoin has not only struggled to surpass the $60K threshold but Bitcoin exchange-traded funds (ETFs) have also encountered notable obstacles.
In recent days, Bitcoin ETFs experienced outflows totaling $804.8 million, causing concern among investors and supporters.
Of specific interest is the iShares Bitcoin Trust ETF (IBIT) by BlackRock, which has failed to attract any new investments since August 27th.
The fund did not receive any fresh investments on multiple days, such as August 27th, 28th, 30th, and September 3rd, further adding to market apprehensions.
Possibility of North Korean Hackers’ Involvement?
Amid these occurrences, U.S. authorities have issued a caution regarding a potential threat posed by North Korean hackers who seem to be targeting crypto businesses engaged in the expanding Bitcoin ETF arena.
North Korean threat actors, notably the Lazarus Group, have a known history of targeting cryptocurrency platforms and companies.
The FBI disclosed that cybercriminals from North Korea are concentrating on personnel at decentralized finance (DeFi) and cryptocurrency entities.
The tactics being utilized by these criminals involve intricate social engineering campaigns that are hard to detect.
This warning has raised uncertainties about the sustainable future of the Bitcoin ETF sector as it tackles both financial and cyber risks.
Shift in IBIT Investors’ Behaviour
Nevertheless, it is worth noting that since its launch on January 11th, IBIT has gathered nearly $21 billion in cumulative net inflows.
On July 22nd, IBIT observed a substantial influx of $500 million, its largest since March 13th, according to data from SpotOnChain.
This transition underscores the varying attractiveness of the ETF to investors over time, reflecting evolving market conditions and sentiments.
Continuous Outflows in Ethereum ETF
In contrast, Ethereum [ETH] ETFs have consistently witnessed outflows with only occasional inflows.
During the period from August 27th to September 4th, ETH ETFs showed outflows on August 27th and 29th and again on September 3rd and 4th.
On August 30th and September 2nd, there were no new investments in the ETFs.
The sole significant inflow occurred on August 28th, when ETH ETFs recorded a modest net inflow of $5.9 million as per Farside Investors.
Similarly, BlackRock’s Ethereum ETF saw predominantly stagnant flows in recent weeks, reflecting the trend observed with BlackRock’s Bitcoin ETF.
Despite the recent challenges, ETF expert Eric Balchunas remains optimistic, believing that better days lie ahead.