Bitcoin ETFs See First Outflows in Eight Weeks, Ethereum Continues Inflows

Data indicates that the demand for spot exchange-traded funds (ETFs) has waned for Bitcoin, while Ethereum continues to attract inflows. The on-chain analytics firm Glassnode recently highlighted changes in the total balance of US spot ETFs for both Bitcoin and Ethereum. These ETFs provide an alternative way for traditional investors to gain exposure to cryptocurrency price movements without dealing with the complexities of wallets and exchanges.

Spot ETFs, though relatively new, have become a significant part of the market. The US Securities and Exchange Commission (SEC) approved spot ETFs for Bitcoin in January 2024 and for Ethereum in July 2024. Ethereum spot ETFs have seen positive net flows recently, with four consecutive weeks of net inflows. During this period, 97,800 ETH have entered the wallets associated with these ETFs. However, their total holdings have yet to reach the 3.81 million ETH peak from February, currently sitting at 3.77 million ETH, about 41,000 tokens lower. Glassnode noted that while accumulation is steady, there is still room for further upside.

Bitcoin has also experienced growth in its spot ETF holdings, surpassing its February high last month. However, the trend has shifted in the past week, with net outflows occurring for the first time in eight weeks. This has resulted in a decrease of 11,500 BTC from the late-May peak, bringing the total holdings to 1.20 million BTC. Glassnode suggests that this pause in demand after a strong run-up could be a sign of re-acceleration in the coming days.

It remains to be seen how the dynamics between Bitcoin and Ethereum will evolve in the coming days. The divergence in their ETF flows could either stabilize or widen, influencing the overall market sentiment and investor behavior. Bitcoin's price has seen a recent recovery, jumping about 2% to $107,600, indicating a potential rebound in investor confidence.