Spot Bitcoin ETFs in the U.S. Reverse Course with $438M Outflow Following Record Influx

Spot Bitcoin ETFs in the U.S. hit the brakes on their rally, reporting $438 million in outflows Monday. This marks the end of a $3.4 billion inflow streak that lasted five days. The shift in sentiment has raised eyebrows across the financial landscape.

Leading the Slide: Bitwise’s BITB Takes a Hit

The largest blow came from Bitwise’s BITB, which saw a massive $280 million in withdrawals. Such a significant outflow suggests a sudden cooling in investor enthusiasm. Grayscale’s GBTC wasn’t far behind, losing $158.2 million, followed by Fidelity’s FBTC, which shed $134.7 million.

Interestingly, smaller players like Ark and 21Shares, along with Invesco, Valkyrie, and VanEck, also experienced net outflows. Even amid this widespread retreat, there were outliers—BlackRock’s IBIT reported an impressive $267.8 million in inflows. Grayscale’s Mini Bitcoin Trust also managed to inch forward with a modest $420,460 gain.

Trading Volumes Remain Resilient Despite Pullback

Bitcoin ETFs collectively traded $5.6 billion on Monday, a slight uptick from $5.4 billion last Friday. This steady trading activity underscores the market’s underlying liquidity, despite net outflows.

• Cumulative inflows for these ETFs have now reached $30.4 billion.
• Their total net assets stand at $102.2 billion, accounting for 5.4% of Bitcoin’s overall market cap.

This robust engagement suggests that while investor sentiment may be temporarily dampened, the broader appeal of Bitcoin ETFs remains intact.

Bitcoin’s Price Retreat: A Pause Before Another Leap?

Bitcoin’s price, hovering around $94,515, has dipped 3.55% in the past 24 hours. This comes after it nearly touched the $100,000 milestone last week. Analysts believe this pullback could signal profit-taking rather than a long-term trend reversal.

Ruslan Lienkha of YouHodler predicts Bitcoin might consolidate its gains before attempting another push toward the psychologically significant $100,000 mark. His remarks reflect growing speculation about whether this pause might pave the way for an “alt-season” in the crypto market.

Ethereum ETFs Buck the Trend with Modest Inflows

While Bitcoin ETFs took a hit, U.S.-based Ethereum ETFs saw minor gains, pulling in $2.8 million on Monday. Funds from Bitwise, Fidelity, and VanEck were the top performers, while 21Shares and Grayscale reported small outflows.

Ethereum ETF trading volumes surged to $711.2 million, nearly doubling from $373.9 million on Friday. This spike reflects heightened investor interest and a potential shift in focus as Bitcoin’s rally pauses.

Altcoins Steal the Spotlight Amid Bitcoin’s Consolidation

Altcoins, led by Solana (SOL), are emerging as strong contenders. SOL brought in $16 million in inflows, dwarfing Ethereum’s $2.8 million. Other notable players included:

• XRP: Attracted $15 million.
• Litecoin: Added $4.1 million.
• Chainlink: Gained $1.3 million.

The rising attention toward altcoins could indicate the onset of a new market cycle, with Ethereum positioned to narrow its gap with Bitcoin.

Stablecoins and Market Confidence

Adding another layer to the unfolding narrative, Binance recorded significant inflows of stablecoins. This trend reflects robust investor confidence and suggests the bull market may still have legs.