U.S. Bitcoin ETFs Witness Significant Outflows Amid Market Uncertainty

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Bitcoin spot ETFs in the U.S. experienced a $91.7 million outflow on Wednesday, marking a two-day streak of outflows.

Ark and 21Shares’ ARKB led this outflow with $60.28 million in exits. Conversely, Ethereum spot ETFs recorded $14.45 million in inflows, signaling contrasting movements in the crypto market.

Bitcoin ETFs Record Major Outflows

On Wednesday, U.S. Bitcoin ETFs continued to struggle, witnessing significant outflows for two days. Leading this decline was Ark and 21Shares’ ARKB, which lost $60.28 million in investor funds. 

Grayscale’s GBTC reported $27.31 million in net outflows, and BlackRock’s IBIT reported $13.74 million, marking its first daily outflow since September 9.

This widespread outflow also affected other Bitcoin ETFs. According to data from SoSoValue, Bitwise’s BITB saw $11.51 million leave the fund. However, seven other spot Bitcoin ETFs registered no activity on Wednesday, maintaining a neutral flow. 

Overall, the total trading volume of these Bitcoin ETFs decreased to $1.66 billion from $2.53 billion the previous day.

This massive decline is visible in BTC’s price, which has dropped significantly over the past two days. BTC is traded for $60,600, representing a 24-hour price drop of 1.19% and a 4.84% decline in the last week.

Ethereum ETFs Witness Inflows Amid Market Shift

While Bitcoin struggled, Ethereum ETFs presented a different picture. On Wednesday, U.S. spot Ethereum ETFs recorded a total inflow of $14.45 million, a significant recovery from the previous day’s 48.52 million outflows. 

BlackRock’s ETHA was the biggest gainer in this segment, pulling in $18.04 million. Also, Franklin Templeton’s EZET recorded an inflow of $1.81 million.

However, not all Ethereum ETFs performed well. Grayscale’s Ethereum Trust (ETHE) saw negative flows, with outflows amounting to $5.4 million.

Interestingly, six other spot Ethereum ETFs reported no flow changes, maintaining stability during market turbulence. The total trading volume for these Ethereum ETFs dropped to $197.82 million, a decrease from $290.81 million on Tuesday.

Market Outlook: Bitcoin Under Pressure Amid Geopolitical Tensions

Bitcoin’s price faced additional pressure due to escalating geopolitical tensions between Israel and Iran. As Israel prepares to respond to Iran’s recent attacks, market analysts foresee further challenges for Bitcoin. 

This issue caused the price to dip to $60,300 before gradually increasing today.

Crypto analyst IncomeSharks was cautious, stating, “Many are focused on $59k, but $57k is my best guess.” This view reflects concerns that Bitcoin may decline further if the selling pressure continues.

Another analyst, Crypto Capo, warned of a potential drop to $52,000 if current support levels fail. He added that Ethereum could drop to $1,800 if Bitcoin reaches $52,000, hinting at further market instability. 

Surprisingly, Capo mentioned that he plans to add more altcoins to his portfolio if this decline occurs. Investors remain wary of further price movements as geopolitical tensions continue, especially with Bitcoin and other altcoins facing intense selling pressure. 

Market participants watch whether Bitcoin can maintain its support levels or drop even lower in the coming days.