Bitcoin ETFs Face Outflows as Bitcoin Dips Below $94K, Ending Five-Day Inflow Streak

Spot bitcoin exchange-traded funds (ETFs) in the U.S. experienced notable outflows on Monday, with investors withdrawing nearly $438.4 million, which marked the end of a five-day streak of net inflows, during which the funds had attracted close to $3.4 billion.

Leading the Outflows

Seven bitcoin ETFs recorded net outflows on Monday, with Bitwise’s BITB fund leading the pack at over $280 million in withdrawals, according to data from SoSoValue.

Grayscale’s GBTC followed with outflows totaling $158.2 million, while Fidelity’s FBTC saw $134.7 million in withdrawals.

Other funds, including Ark and 21Shares’ ARKB, logged $110.9 million in outflows. Invesco, Valkyrie, and VanEck also reported negative flows during the day.

Some Positive Momentum

Despite the overall trend, two funds reported positive flows. BlackRock's IBIT, the largest spot bitcoin ETF with $31.6 billion in cumulative inflows, attracted $267.8 million in net inflows. Grayscale’s Mini Bitcoin Trust saw a modest inflow of $420,460.

Broader Market Impact

The total trading volume for the 12 bitcoin ETFs reached $5.6 billion on Monday, slightly higher than the $5.4 billion recorded last Friday.

Cumulative net inflows stood at $30.4 billion, while the funds collectively hold $102.2 billion in assets under management, representing about 5.4% of bitcoin’s total market capitalization.

Meanwhile, bitcoin prices retreated after a recent rally that pushed the cryptocurrency near $100,000. On Monday, bitcoin dropped by 3.55% in the past 24 hours, trading around $94,515 at the time of reporting.

Ethereum ETFs Show Modest Activity

In contrast to bitcoin funds, spot Ethereum ETFs recorded modest net inflows of $2.8 million on Monday. Funds from Bitwise, Fidelity, and VanEck saw positive flows, while 21Shares and two Grayscale ETFs reported outflows.

The total trading volume for Ethereum ETFs rose significantly, reaching $711.2 million, compared to $373.9 million last Friday. Cumulative inflows for the nine Ethereum ETFs stood at $109 million.

The significant outflows from bitcoin ETFs coincided with a 6% drop in bitcoin prices, falling to $92,775 at one point. This dip also triggered liquidations of over $116 million in long positions across the market.

As the market absorbs these developments, the divergence in flows between bitcoin and Ethereum ETFs highlights varying investor sentiment and market dynamics across the two leading cryptocurrencies. While bitcoin funds saw a sharp pullback, Ethereum ETFs managed to sustain some inflows at a modest scale.