In-Depth Analysis: Bitcoin and Ethereum Spot ETFs Experience Persistent Outflows
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Current Trends in Bitcoin and Ethereum Spot ETFs
According to recent insights from the on-chain analytics firm Glassnode, Bitcoin and Ethereum spot exchange-traded funds (ETFs) have been experiencing consistent net outflows for the past months. Spot ETFs provide investors with an indirect means to gain exposure to cryptocurrencies, eliminating the need for direct interaction with blockchain technology. These funds purchase and store the tokens on behalf of the investors.
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While digital asset ETFs are globally accessible, those based in the United States have emerged as the most influential. The US Securities and Exchange Commission (SEC) approved the first spot ETFs for Bitcoin in January 2024 and for Ethereum in July 2024. These ETFs have since become pivotal in the crypto market, particularly appealing to traditional institutional investors.
Bitcoin Spot ETFs: A Closer Look at Recent Netflow Trends
Recent data reveals that Bitcoin spot ETFs in the U.S. have been witnessing a trend of capital outflows. The chart below illustrates the 30-day simple moving average (SMA) of net flows for Bitcoin spot ETFs over recent years. Since November, the 30-day SMA net flow has predominantly remained negative, indicating a consistent outflow of capital.
While there was a brief period earlier this month where the SMA netflow turned positive, this was short-lived, quickly reverting to a negative state. This suggests a sustained lack of demand among investors.
Ethereum Spot ETFs: A Similar Pattern Emerges
The trend observed with Bitcoin spot ETFs is mirrored by Ethereum spot ETFs. The following chart highlights the 30-day SMA netflow for U.S. Ethereum spot ETFs, which also shows a return to negative territory after a brief positive period.
This persistent pattern of outflows underscores a broader disinterest in the digital asset market among ETF investors at this time. As noted by Glassnode, there is “no sign of renewed demand,” leaving the duration of these outflows uncertain.
Bitcoin Market Update
Currently, Bitcoin is priced around $88,000, marking a 3.5% decline over the past week. The chart below provides a visualization of Bitcoin’s price movement over the last five days, reflecting the current market sentiment.
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