Bitcoin and Ether ETFs Extend Outflow Streak as Institutional Interest Cools

Source: DefiPlanet Original Title: Bitcoin, Ether ETFs Extend Outflow Streak as Institutional Interest Cools Original Link:

Quick Breakdown

• Bitcoin and Ether ETFs have seen sustained outflows since November, pointing to cooling institutional engagement.
• Crypto funds recorded nearly $1 billion in outflows last week, extending a broader liquidity contraction.
• BlackRock’s IBIT remains dominant, outperforming rival Bitcoin ETFs and even gold in net inflows despite weak returns.

Market Overview

Bitcoin and Ether exchange-traded funds in the United States are experiencing a sustained period of capital outflows, signaling a slowdown in institutional participation across the crypto market, according to onchain analytics firm Glassnode.

Glassnode reported Tuesday that the 30-day simple moving average of net flows into US spot Bitcoin and Ether ETFs has remained negative since early November, pointing to what it described as “partial disengagement” from institutional investors.

Institutional Participation Shows Signs of Retreat

ETF flows are widely viewed as a proxy for institutional sentiment, and their prolonged decline suggests large allocators are becoming more cautious as market conditions tighten.

“This persistence suggests a phase of muted participation and partial disengagement from institutional allocators,”

Glassnode said, adding that the slowdown reinforces a broader contraction in crypto market liquidity.

Historically, flows into crypto ETFs tend to lag spot market performance, which has been under pressure for weeks.

Selling Pressure Returns Despite BlackRock Resilience

Data from Coinglass shows aggregate Bitcoin ETF flows have remained negative for four consecutive trading days. Market analysis indicates crypto ETF selling pressure is intensifying.

According to reports, crypto investment funds recorded $952 million in outflows last week alone, with investors pulling capital from crypto funds in six of the past ten weeks.

Still, BlackRock’s iShares Bitcoin Trust (IBIT) has stood out as a relative exception, posting modest inflows over the past week despite broader market weakness.

IBIT Outperforms Peers and Even Gold on Flows

Despite the recent pullback, BlackRock’s spot Bitcoin ETF remains the industry leader by a wide margin. Since launch, IBIT has attracted $62.5 billion in inflows, far surpassing all competing spot Bitcoin ETFs.

Analysts noted that IBIT is currently the only fund posting a negative return for the year, yet it still ranks sixth overall by inflows. IBIT even attracted more capital than the SPDR Gold Shares (GLD) ETF, which is up 64% this year, a signal of strong long-term investor conviction.

“If you can do $25 billion in a bad year, imagine the flow potential in a good year.”

This demonstrates sustained confidence in Bitcoin ETF products despite near-term market volatility.