- US spot bitcoin exchange-traded funds (ETFs) recorded net inflows on Wednesday.
- Spot Ethereum ETFs also rebounded, attracting $35.12 million in net inflows on Wednesday.
- Bitcoin has been trading in a narrow band between $114,000 and $115,000 in recent days.
US spot bitcoin exchange-traded funds (ETFs) recorded net inflows on Wednesday, halting a four-day streak of outflows that saw $1.45 billion pulled from the market.
According to data from SoSoValue, the funds posted a combined net inflow of $91.5 million.
BlackRock’s iShares Bitcoin Trust (IBIT) led the recovery with $42 million in inflows.
Bitwise’s BITB followed with $26.35 million, while Grayscale’s GBTC saw $14.5 million enter the fund. ETFs from Fidelity and VanEck also posted positive flows.
The only fund to register outflows was the ARKB ETF from Ark and 21Shares, which saw $5.37 million in net redemptions.
The return to net inflows follows a volatile stretch driven by weak US macroeconomic data and a broader pullback in risk assets, prompting profit-taking among crypto investors.
Bitcoin has been trading in a narrow band between $114,000 and $115,000 in recent days.
Ethereum ETFs also regain momentum
Spot Ethereum ETFs also rebounded, attracting $35.12 million in net inflows on Wednesday.
The ETFs had seen inflows of around $73 million on Tuesday.
The recovery comes after Ethereum ETFs suffered two consecutive days of redemptions, which drained $617 million from the nine spot funds.
BlackRock’s ETHA brought in $33.39 million, while Grayscale’s ETHE saw $10 million in new money.
However, Grayscale’s Mini Ethereum Trust reported net outflows of $8.67 million.
On Tuesday alone, US spot Bitcoin ETFs saw over $333 million in outflows, while Ethereum ETFs lost $465 million—their largest daily outflow to date.
Market reaction driven by sentiment
Ted Pillows, a crypto investor, described the market reaction as “PTSD from 2017 and 2021,” attributing much of the recent volatility to emotional trading decisions by retail participants.
According to Pillows, the 60% retail composition of the ETF investor base makes profit-taking more reflexive than strategic.
Despite the recent drawdown, analysts maintain that the underlying fundamentals of Bitcoin and Ethereum remain intact.
The shift back into net inflows could be an early indication that institutional investors are regaining confidence, even as macroeconomic uncertainty persists.
With volatility remaining elevated and economic indicators mixed, ETF flows are likely to remain a key barometer of sentiment in the crypto market in the near term.