Crypto ETF Outflows Show Institutions Disengaging: Glassnode
US spot Bitcoin and Ether ETFs have experienced sustained outflows since early November, reflecting institutional investors’ reduced engagement with crypto assets, according to Glassnode. The 30-day moving average of net ETF flows has turned negative, signaling a phase of low participation and underscoring broader market liquidity contraction. ETF flows, which typically lag spot market trends, align with the ongoing downturn in crypto prices since mid-October. ETF activity is viewed as a key gauge of institutional sentiment, which appears bearish amid market contraction. Over the past four trading days, aggregate Bitcoin ETF flows have been negative, though BlackRock’s iShares Bitcoin Trust (IBIT) maintained minor inflows. Crypto funds saw $952 million in outflows last week, marking capital withdrawals in six of the past ten weeks. Despite this, IBIT has accumulated $62.5 billion in inflows since inception, outpacing rival ETFs and even surpassing gold ETF inflows this year. Despite IBIT’s negative year-to-date return, it remains among the top funds for inflows, suggesting strong long-term potential if market conditions improve.
