Bitcoin and Ethereum ETFs Rebound Strongly Before Renewed Outflows

After a consistent run of outflows from both Bitcoin and Ethereum ETFs, the US spot Bitcoin and Ethereum exchange-traded funds (ETFs) saw a sharp rebound on Tuesday. The two leading digital assets attracted a combined inflow of around $619 million, signaling renewed investor confidence. However, the momentum faded by Wednesday, when both Bitcoin and Ethereum ETFs again recorded outflows.

Bitcoin ETFs Lead the Tuesday Recovery

Bitcoin ETFs dominated Tuesday’s rebound, registering a total inflow of $477.2 million. The increase showed a strong return of investor appetite for digital asset funds after days of decline. According to Farside, BlackRock’s iShares Bitcoin Trust (IBIT) accounted for nearly half of the inflows, adding $210.9 million. This reinforced its position as a major force in the spot Bitcoin ETF market.

Other funds also saw meaningful gains, which include the following:

• The ARK 21Shares Bitcoin ETF (ARKB) recorded inflows of $162.85 million, showing continued investor confidence.
• Fidelity’s FBTC attracted $34.1 million, while Bitwise’s BITB added $20.1 million.
• VanEck’s HODL secured $17.41 million, and Grayscale’s BTC brought in $13.86 million.
• Invesco’s BTCO posted $8.92 million, Franklin’s EZBC added $6.48 million, and Valkyrie’s BRRR recorded $2.53 million in new inflows.

Ethereum Joins the Rally with Strong Inflows

Ethereum ETFs also participated in the Tuesday upturn. The total inflow reached $141.7 million, led by Fidelity’s FETH, which saw $59.1 million in new investments. BlackRock’s ETHA followed with $42.5 million. Grayscale’s ETH fund added $22.6 million, while its ETHE product gained $13.1 million. VanEck’s ETHV contributed another $4.4 million to the day’s total, signaling a broad-based inflow across most major issuers.

The positive activity on Tuesday highlighted investor willingness to re-enter the market, with both Bitcoin and Ethereum products benefiting from renewed demand.

Momentum Fades as Crypto ETFs Face Withdrawals

However, the optimism was short-lived, as both Bitcoin and Ethereum ETFs saw outflows the next day. On Wednesday, total withdrawals reached $120 million, with Bitcoin funds losing $101.29 million and Ethereum ETFs shedding $18.77 million.

Among Bitcoin products, Grayscale’s GBTC, Fidelity’s FBTC, and ARK 21Shares’ ARKB each saw significant investor exits. Meanwhile, Bitwise’s BITB recorded the smallest decline of the group at $10 million. Despite the overall negative trend, BlackRock’s IBIT continued to draw investors, gaining $73.6 million, while Valkyrie’s BRRR added $2.5 million.

Figures from SosoValue indicated that total Bitcoin ETF trading volume reached $6.58 billion. The cumulative net inflow for Bitcoin stood at $61.87 billion, while the total net assets of all spot Bitcoin ETFs amounted to $146.27 billion. This figure represents 6.81% of Bitcoin’s total market capitalization.

Ethereum ETFs moved in the same direction, ending the day with notable outflows. Fidelity’s FETH recorded the largest withdrawal of $49.5 million, while Grayscale’s ETH and ETHE products lost $46.6 million and $33.5 million, respectively. BlackRock’s ETHA fund, however, attracted $110.71 million in new investments, helping to offset some of the losses from other issuers.

Overall, Ethereum ETF trading reached $2.63 billion, with total managed assets valued at $25.81 billion, representing about 5.66% of the cryptocurrency’s market capitalization.

Price Movement and Market Sentiment

Despite the fluctuations in ETF flows, both major cryptocurrencies posted modest gains. Bitcoin rose just over 2% in the past 24 hours, trading around $110,000, while Ethereum climbed about 2%, reaching approximately $3,890. These small increases offered some relief for traders amid a generally stable market.

However, broader crypto market sentiment remained cautious. The crypto fear and greed index sits at 27, indicating a prevailing sense of ‘fear.’ This cautious mood is reflected in continued ETF outflows, even as prices inch higher, with many traders hesitant to make strong commitments amid uncertainty over the market’s short-term direction.

So far, market trends indicate that while investor interest in spot crypto ETFs remains active, sentiment continues to fluctuate. Tuesday’s strong rebound showed that capital can return quickly when confidence rises, but Wednesday’s pullback highlighted that caution still guides much of the trading activity.