Home Bitcoin News Bitcoin ETFs See Continued Outflows as Ether ETFs Experience Rebound

Bitcoin ETFs See Continued Outflows as Ether ETFs Experience Rebound

Bitcoin ETFs

Bitcoin exchange-traded funds (ETFs) have been under pressure recently, recording their fourth consecutive day of outflows on January 14. The total outflow for the day reached a significant $209.82 million, bringing the total outflows over the past four days to over $1.2 billion. Despite Bitcoin’s recent price surge, ETF investors seem cautious, withdrawing funds from the 12 spot Bitcoin ETFs available in the U.S.

The largest contributor to these outflows was BlackRock’s IBIT ETF, which alone saw $219.48 million in withdrawals. Following IBIT were Bitwise’s BITB, with $8.93 million in outflows, and a few other Bitcoin ETFs that also experienced slight losses. However, there were some pockets of positivity, with certain funds seeing minor inflows. Widom Tree’s BTCW managed to secure $10.24 million, while Van Eck’s HODL and ARK 21Shares’ ARKB ETFs saw inflows of $5.46 million and $2.89 million, respectively.

Despite the ongoing withdrawals, Bitcoin’s price itself experienced an upward movement, rising past $97,000 and reaching a high of $97,705 on January 15. This price surge was fueled by a broader market rally, which saw a 1.3% increase in the overall market capitalization, bringing it to $3.53 trillion. The rally followed a report from the Bureau of Labor Statistics indicating a lower-than-expected inflation increase, with the producer price index rising by only 0.2% in December, well below the 0.4% projected by economists.

However, the outflows from Bitcoin ETFs suggest that many institutional investors remain hesitant, even as Bitcoin’s price continues to climb. The lower trading volume for Bitcoin ETFs—$2.23 billion on January 14, down from $3.17 billion the previous day—also signals a cautious approach from the market.

Ether ETFs See Inflows as Market Shifts

While Bitcoin ETFs are seeing continued outflows, Ethereum ETFs have made a notable rebound. On January 14, the nine Ether ETFs recorded inflows after four days of consecutive outflows, which had seen more than $354 million exit the funds. The inflow was modest but significant, totaling $1.15 million, and it all came from Bitwise’s ETHW ETF. This marks a shift in investor sentiment toward Ethereum-based investment vehicles, as Ether’s price also saw a slight uptick.

The Ether ETF market has experienced its own volatility, with cumulative net inflows into these investment products reaching $2.41 billion. Despite the broader trend of outflows, Ethereum has shown resilience, trading at $3,228, up by 2% at the time of writing.

What This Means for Crypto ETFs and the Broader Market

The contrast between Bitcoin and Ether ETF performance is a reflection of the varying investor sentiment in the cryptocurrency space. While Bitcoin continues to attract significant price attention, it is also facing cautious institutional sentiment, which is likely influencing ETF withdrawals. The fact that Bitcoin’s price surged while its ETFs saw outflows suggests that investors may be favoring direct exposure to the asset rather than through ETFs, possibly due to concerns over market volatility or broader economic factors.

On the other hand, Ethereum’s recent inflows indicate that there is still investor interest in Ethereum-based products, despite its own challenges. The modest rebound in Ether ETFs suggests that Ethereum may be seen as a more stable investment option in the short term, particularly with its ongoing developments and use cases within the decentralized finance (De Fi) ecosystem.

For investors and analysts alike, these trends provide important insights into the future of crypto ETFs. The contrasting performances of Bitcoin and Ether ETFs could indicate that, while both assets remain attractive to investors, Bitcoin may need to overcome skepticism and volatility before seeing sustained ETF inflows.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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