TL;DR
- US spot Bitcoin ETFs recorded net inflows of $75.47 million, ending a five-day outflow streak.
- BlackRock’s IBIT and Grayscale’s Mini Trust led inflows, partially offsetting withdrawals from Fidelity.
- US spot Ethereum ETFs extended their negative streak to seven days of capital outflows.
After five consecutive days of outflows, the digital asset market breathes with cautious relief. Bitcoin Exchange-Traded Funds (ETFs) finally registered inflows last Wednesday. SoSoValue data indicates that Bitcoin funds reported positive capital flows in Bitcoin and Ethereum ETFs totaling $75.47 million by the end of the day.
The pioneer asset’s negative streak had extended from November 12 to 18, with over $2.26 billion flowing out of ETFs, coinciding with a general correction in the crypto market that briefly pushed Bitcoin below $90,000. For these reasons, the change in trend is crucial.
The main drivers of this trend reversal were BlackRock’s IBIT, which attracted $60.61 million, and Grayscale’s Mini Bitcoin Trust, with $53.84 million in inflows. However, optimism was tempered by outflows from two funds: Fidelity’s FBTC and VanEck’s HODL recorded net withdrawals of $21.35 million and $17.63 million, respectively.
Macroeconomic Unease and Ethereum’s Divergence
Bitcoin’s numbers turned green, but macroeconomic uncertainty persists. The Federal Reserve’s upcoming interest rate decision in December remains a focal point of nervousness.
Traders’ hopes for another rate cut have diminished, with the CME Group’s FedWatch Tool now showing only a 33.8% chance of a 25-basis-point cut. This caution is reflected in the Crypto Fear and Greed Index, which remains at 11, signaling “extreme fear.”
Analysts like Vincent Liu, CIO of Kronos Research, interpret recent outflows as “institutional recalibration” rather than capitulation, predicting a swift return to risk appetite as soon as macroeconomic signals become clearer.
However, capital flows in Bitcoin and Ethereum ETFs tell a story of divergence. While Bitcoin found stability, spot Ethereum ETFs have extended their negative outflow streak to a seventh consecutive day, with $37.35 million leaving the funds. This contrast suggests that, while the primary cryptocurrency has shown a slight recovery, rising 0.72% in 24 hours to $92,200, negative sentiment in the altcoin segment has not yet fully dissipated.
