Key Points
- Bitcoin and Ethereum ETFs are experiencing consecutive days of capital outflows, indicating investor caution.
- A majority of BTC ETF inflows are driven by short-term trading, reflecting a speculative market behavior.
Bitcoin [BTC] and Ethereum [ETH] Exchange Traded Funds (ETFs) are witnessing a trend of capital outflows.
Bitcoin ETF Outflows
Data from Sosovalue shows Bitcoin ETFs had net withdrawals of $371 million on March 11th. This marked the seventh straight day of outflows.
Ethereum ETFs are also facing challenges, with $21.57 million in net outflows for the fifth consecutive day. This trend indicates a cautious sentiment among investors due to market fluctuations.
In these withdrawals, BlackRock’s IBIT led with $151.26 million in outflows, followed by Fidelity’s FBTC with $107.10 million. Other funds experiencing outflows include Grayscale’s GBTC, Franklin’s EZBC, WisdomTree’s BTCW, and Invesco’s BTCO.
Ethereum ETF Outflows
Ethereum ETFs are also seeing investor withdrawals. BlackRock’s ETHA led the outflows with $11.82 million, followed by Fidelity’s FETH with $9.75 million. This decline shows a shift in market sentiment and a cautious approach among institutional investors.
Despite significant inflows into U.S.-based ETFs since January 2024, a 10x Research report suggests that only 44% represents a long-term investment. The remaining 56% is driven by short-term trading strategies.
The broader crypto market remains resilient, with Bitcoin and Ethereum seeing price increases. This suggests that despite ETF outflows, investor confidence in cryptocurrency’s long-term potential remains intact.
