Bitcoin ETFs See Reversal as Inflows of $75 Million End 5-Day Outflow Streak

TLDR

• Bitcoin ETFs experienced $75 million in inflows after five consecutive days of outflows.
• BlackRock’s IBIT and Grayscale’s Mini Bitcoin Trust were the main contributors to the inflows.
• Fidelity’s FBTC and VanEck’s HODL saw outflows of $21.35 million and $17.63 million, respectively.
• Despite Bitcoin’s recovery, Ethereum ETFs continued to experience outflows, totaling $37.35 million.
• The Federal Reserve’s upcoming interest rate decision in December remains a major concern for investors.

Bitcoin ETFs registered inflows last Wednesday, marking a reversal after five consecutive days of outflows. According to SoSoValue data, Bitcoin and Ethereum ETFs saw inflows of $75.47 million by the end of the day. This shift in trend follows a rough period for Bitcoin, which experienced over $2.26 billion in outflows from November 12 to 18.

BlackRock’s IBIT and Grayscale’s Mini Bitcoin Trust Lead Inflows

The inflows were primarily driven by BlackRock’s IBIT, which attracted $60.61 million. Grayscale’s Mini Bitcoin Trust followed with $53.84 million in inflows. These funds contributed to the trend reversal as Bitcoin prices regained some stability. However, other funds, such as Fidelity’s FBTC and VanEck’s HODL, recorded outflows of $21.35 million and $17.63 million, respectively. Despite these withdrawals, the overall trend for Bitcoin ETFs has shifted to the positive.

While Bitcoin ETFs have seen inflows, Ethereum ETFs have struggled. Spot Ethereum ETFs have faced outflows for the seventh consecutive day. These outflows totaled $37.35 million, indicating continued negative sentiment in Ethereum markets. Although Bitcoin has shown a slight recovery, rising 0.72% in 24 hours to $92,200, Ethereum remains under pressure. This divergence between Bitcoin and Ethereum ETF flows highlights contrasting investor sentiment in the two assets.

Macroeconomic Factors and Future Outlook for Bitcoin ETFs

Despite the positive movement in Bitcoin ETFs, macroeconomic uncertainty remains. The Federal Reserve’s December interest rate decision is a key factor influencing market sentiment. Traders have reduced expectations for a rate cut, now assigning a 33.8% probability for a 25-basis-point cut. This caution is reflected in the Crypto Fear and Greed Index, which remains at “extreme fear” levels.

Analysts suggest that institutional investors may be recalibrating their positions in anticipation of clearer macroeconomic signals. As Bitcoin ETFs continue to attract inflows, the outlook for the broader crypto market remains uncertain.

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