TLDR
- BTC ETF outflows reached $1.2 billion last week, marking the third-largest outflow on record.
- Bitcoin’s price rebounded 4.4%, reaching $106,172, despite the significant ETF withdrawals.
- Ethereum saw $508 million in outflows, but its price gained 7.2%, reaching $3,617.
- Solana ETFs experienced a $137 million influx, contrasting the outflows in Bitcoin and Ethereum funds.
- Liquidity indicators show improved financial conditions, contributing to the market’s recovery.
BTC ETF outflows reached $1.2 billion last week, marking the third-largest outflow on record. Despite these withdrawals, Wall Street’s interest in cryptocurrency remains strong. Spot Bitcoin and Ethereum funds saw sizable outflows, while Solana ETFs attracted fresh investment.
Bitcoin ETF Outflows Reflect Position-Trimming
Last week, BTC ETF outflows totaled $1.2 billion, despite a rebound in Bitcoin’s price. Bitcoin’s price rose 4.4% over 24 hours, reaching $106,172. Some market experts argue that these outflows indicate position-trimming, rather than mass selling.
The recent outflows follow one of the strongest inflow streaks for Bitcoin since early 2024. This may suggest that investors are adjusting their portfolios after a period of heavy inflows. “We are seeing position-trimming after significant inflows, not a full market exit,” one observer noted.
While Bitcoin saw outflows, it still showed signs of recovery. Liquidity indicators such as the SOFR-EFFR spread tightened, signaling improved financial conditions. These changes contributed to Bitcoin’s 4.4% price gain, despite ETF withdrawals.
Ethereum ETF Outflows Follow Bitcoin’s Trend
Ethereum also faced outflows, with $508 million leaving Ethereum products last week. Ethereum’s price gained 7.2%, reaching $3,617, signaling recovery after broader market declines. Despite these positive price movements, Ethereum ETFs saw continued withdrawals.
Ethereum’s market recovery comes alongside Bitcoin’s, which further supports the idea of position adjustments rather than panic selling. Market participants are focusing on liquidity and market conditions as Ethereum stabilizes. Ethereum’s price jump contrasts with the overall outflows, showing some investor optimism in the ecosystem.
The Ethereum outflows mirror Bitcoin’s in several ways. Both assets faced withdrawal pressures despite overall price rebounds in the short term. As one market participant stated, “The outflows are more of a technical adjustment than a panic-driven exit.”
While Bitcoin and Ethereum ETFs faced withdrawals, Solana ETFs saw $137 million in new inflows. The trend suggests that Solana remains a growing interest among crypto investors. As larger funds withdrew from Bitcoin and Ethereum, investors redirected capital to other projects like Solana.
Solana’s inflows reflect growing confidence in projects outside of Bitcoin and Ethereum. Despite market volatility, Solana’s ETFs managed to attract substantial new investments. This shift indicates a diversification of interest within the broader cryptocurrency space.
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