Bitcoin, Ethereum ETFs Regain Inflows After Sharp Pullback

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After four straight days of redemptions, US spot Bitcoin and Ethereum exchange-traded funds (ETFs) saw a return to net inflows on Wednesday, marking a potential turning point in recent crypto sentiment. The combined recovery in digital asset ETFs comes after more than $1.45 billion was pulled from the market amid a broader downturn.

According to fresh data from SoSoValue, the 11 spot Bitcoin ETFs posted a collective net inflow of $91.5 million. BlackRock’s iShares Bitcoin Trust (IBIT) led the charge with $42 million in new investor money.

Bitwise’s BITB followed closely with $26.35 million in inflows, while Grayscale’s GBTC brought in another $14.5 million. Smaller gains were reported by Fidelity and VanEck, both of which posted modest but positive flows.

The only fund to record a net outflow was the ARKB ETF managed by Ark Invest and 21Shares, which saw $5.37 million in redemptions.

Spot Ethereum ETFs also turned the tide. After two consecutive days of redemptions that wiped out $617 million, Wednesday’s figures reflected a bounce with $35.12 million in net inflows. That followed an even stronger $73 million gain on Tuesday.

BlackRock’s ETHA led the pack again with $33.39 million in new investment, while Grayscale’s ETHE attracted an additional $10 million.

However, the Grayscale Mini Ethereum Trust bucked the trend, posting an $8.67 million outflow.

This two-day upswing helped offset some of Tuesday’s steep declines, when spot Bitcoin ETFs alone saw $333 million in outflows and Ethereum ETFs suffered their largest single-day loss to date.

The return to positive flows comes after a volatile week marked by disappointing US macroeconomic data and widespread risk-off sentiment. Profit-taking and emotional trading behaviour have dominated the landscape.

In a recent interview, crypto investor Ted Pillows compared the current market to past crashes, saying: “It’s PTSD from 2017 and 2021 all over again.” He pointed to the 60% retail investor base in crypto ETFs, which often leads to short-term, reactionary moves rather than long-term positioning.

Despite the turbulence, market analysts maintain that the core fundamentals of Bitcoin and Ethereum remain intact. The recovery in institutional ETF flows could signal that confidence among larger players is beginning to return, even as economic uncertainty continues.

Bitcoin remains in a tight range, trading between $114,000 and $115,000, while Ethereum prices have shown similar stability following the ETF turnaround.

With sentiment and liquidity still sensitive to global economic data, ETF flows are expected to remain a leading indicator of where crypto markets head next.