Bitcoin and Ethereum ETFs Rebound, Then See Outflows

Following a period of outflows, Bitcoin and Ethereum ETFs experienced a significant rebound on Tuesday. This resurgence was driven by strong investor confidence, with combined inflows exceeding $619 million, signaling renewed interest in these digital asset funds. However, this momentum faded on Wednesday as both Bitcoin and Ethereum ETFs again recorded withdrawals. Tuesday saw Bitcoin ETFs dominate the rebound, attracting nearly $477 million in inflows, largely attributed to Blackrock’s iShares Bitcoin Trust (IBIT). Other noteworthy gains include ARK 21Shares Bitcoin ETF ($162.85 million), Fidelity’s FBTC ($34.1 million), and VanEck’s HODL ($17.41 million), all contributing to the positive market shift. Ethereum ETFs also participated in the rally, with a total inflow of $141.7 million led by Fidelity’s FETH, which attracted $59.1 million. Other notable inflows included Grayscale’s ETH fund ($22.6 million) and BlackRock’s ETHA. Despite these positive developments, investor enthusiasm for Bitcoin and Ethereum ETFs waned the next day, resulting in withdrawals of nearly $120 million on Wednesday. Bitcoin funds experienced significant losses, with Grayscale’s GBTC leading the way, followed by Fidelity’s FBTC and ARK 21Shares’ ARKB, while Bitwise’s BITB saw the smallest decline of the group. Meanwhile, BlackRock’s IBIT continued to attract investors, gaining $73.6 million. While Ethereum ETFs also saw a decline in inflows, BlackRock’s ETHA showed resilience with $110.71 million in new investments. 24-hour price movements for both Bitcoin and Ethereum were modest, indicating a relatively stable market environment. Overall, investor interest remains active, but caution still prevails. The crypto fear and greed index currently sits at 27, reflecting a cautious sentiment across the market. The uncertainty surrounding future market direction continues to influence trading activity, as both short-term gains and potential losses remain in play.