Bitcoin and Ethereum ETFs See Massive Outflows Amid Market Volatility—Is Institutional Confidence Wavering
Bitcoin and Ethereum exchange-traded funds (ETFs) are facing intensified pressure as fresh data from Lookonchain reveals a significant wave of outflows, suggesting rising caution among institutional investors. Despite a few bright spots, the majority of funds experienced steep losses, reflecting market volatility and a potential shift in sentiment.
According to the latest figures, Bitcoin ETFs have recorded a cumulative outflow of 2,050 BTC, equating to approximately $172.33 million in value. This development has driven the weekly net flow into negative territory, with 3,997 BTC (around $336.05 million) leaving various funds over the past seven days. Still, the cumulative holdings remain robust, with the top ten Bitcoin ETFs collectively managing 1,111,163 BTC, valued at a staggering $93.42 billion.
Fidelity’s $FBTC Leads Bitcoin ETF Outflows
Among the Bitcoin funds, Fidelity’s Wise Origin Bitcoin Fund ($FBTC) saw the largest daily outflow, with 1,353 BTC (worth $113.75 million) exiting the fund. Despite this, it still holds a significant portfolio of 194,273 BTC, valued at $16.33 billion. Similarly, ARK 21Shares Bitcoin ETF ($ARKB) also witnessed a major outflow of 1,347 BTC, further contributing to the week’s bearish tone.
On a more positive note, BlackRock’s iShares Bitcoin Trust ($IBIT) bucked the trend with a net inflow of 364 BTC, bringing its total holdings to an impressive 572,233 BTC. This indicates continued interest from select institutional players even in a period of uncertainty.
Ethereum ETFs Hit Harder with Over $97M in Weekly Outflows
The situation appears even more dramatic for Ethereum-based ETFs. Over the past 24 hours alone, these funds have experienced cumulative net outflows of 10,484 ETH—an equivalent of $16.56 million. For the entire week, the number balloons to 62,017 ETH, totaling nearly $97.99 million in value.
$ETHE Suffers Steepest Ethereum Outflows
Grayscale’s Ethereum Trust ($ETHE) emerged as the largest loser among Ethereum ETFs, shedding 6,657 ETH (around $10.52 million) in a single day. The fund now holds 1,174,546 ETH, maintaining its dominant position despite the dip.
BlackRock’s iShares Ethereum Trust ($ETHA) also experienced daily outflows of 2,725 ETH, but interestingly, its weekly balance remains in the green with net inflows totaling 1,514 ETH. This suggests that while there is short-term pressure, some institutional investors are still optimistic about Ethereum’s longer-term prospects.
Institutional Sentiment Turning Cautious
The surge in ETF outflows comes at a time when crypto markets are experiencing notable volatility. These movements point toward profit-taking and a more cautious approach from institutional investors, particularly as macroeconomic factors and regulatory developments continue to influence market sentiment.
As fund flows remain a critical indicator of institutional confidence, the coming weeks will be essential in determining whether this trend of outflows continues or if the market rebounds with renewed buying interest.
