Bitcoin, Ethereum ETFs Shed $582M in a Day as Institutions Trim Risk
On Monday, Bitcoin and Ethereum spot ETFs recorded their largest daily net outflows in about two weeks, totaling $582.4 million, amid heightened volatility in U.S. equities and uncertainty over global monetary policy. Bitcoin spot ETFs saw $357.6 million in outflows, with major activity in Fidelity, Ark, and Bitwise funds; BlackRock was unchanged. Ethereum spot ETFs saw nearly $225 million in outflows, the highest since early December. Despite stable crypto prices, ETF flows reflected institutional investors reducing risk exposure in step with broader equity sell-offs, viewing spot ETFs as efficient tools for adjustment. In December, U.S. spot Bitcoin ETFs netted about $225 million in outflows, while Ethereum ETFs were roughly flat. The Federal Reserve’s recent rate cut, coupled with signals of a pause and internal dissent, added to uncertainty and tighter financial conditions, raising Treasury yields and pressuring technology stocks. While short-term volatility and weak crypto demand persist, there is cautious optimism for Bitcoin’s long-term prospects, with strong institutional ETF participation expected to support eventual recovery.
