Bitcoin and Ethereum ETFs See Significant Outflows Amid Market Uncertainty

Cryptocurrency exchange-traded funds (ETFs) experienced a major shift as investors pulled substantial funds from Bitcoin and Ethereum ETFs. According to Sosovalue, Bitcoin ETFs recorded a net outflow of $186.28 million, while Ether ETFs saw $22.46 million in withdrawals, marking a reversal from the previous week’s inflows.

Fidelity’s FBTC led Bitcoin ETF outflows with $136.09 million withdrawn, followed by Grayscale’s GBTC at $46.26 million. Other Bitcoin ETFs, including Invesco’s BTCO, Franklin’s EZBC, and VanEck’s HODL, also faced outflows of $34.03 million, $19.75 million, and $5.51 million, respectively. However, BlackRock’s IBIT ETF saw a contrasting inflow of $55.36 million.

In the Ether ETF market, Grayscale’s ETHE was the sole fund with outflows, losing $22.46 million, while other Ether ETFs remained unchanged.

Despite these movements, Bitcoin remains resilient, trading around $98,100 as of February 10, slightly up from the previous day. Ether is priced at approximately $2,701.

The ETF outflows raise questions about shifting investor sentiment, possibly indicating profit-taking or concerns over macroeconomic conditions. Notably, Bitcoin withdrawals from exchanges have surged, reminiscent of the FTX collapse in 2022. On February 5, over 47,000 BTC exited exchanges, reducing Bitcoin’s available supply by 3%. Historically, such large outflows have often preceded price rallies.

Amid these fluctuations, investors are closely watching economic indicators, including inflation trends and Federal Reserve policy updates, for potential market impacts.