In a significant shift for the cryptocurrency market, Bitcoin exchange-traded funds (ETFs) experienced substantial net outflows, signaling a retreat by institutional investors amid ongoing volatility. The source notes that this trend marks a notable reversal from the previous week, highlighting the challenges faced by digital assets in the current economic climate.
Bitcoin ETFs Experience Significant Net Outflows
During the week ending January 23, Bitcoin ETFs recorded net outflows of $133 million, making it the second-largest weekly redemption on record. This sharp decline follows a week where inflows had reached $142 million, indicating a swift change in investor sentiment.
Ethereum ETFs Also Affected by Withdrawals
Ethereum ETFs were not spared from the trend, with withdrawals totaling $611 million, primarily driven by BlackRock's ETH fund. As a result, the total net assets under management for Bitcoin ETFs plummeted to $115.88 billion, down from $124.56 billion. This significant drop underscores the increasing caution among institutional investors as they navigate the turbulent waters of the cryptocurrency market.
As institutional investors retreat from Bitcoin ETFs amid volatility, a recent analysis by Bitfinex highlights the growing stability of the Ethereum platform, attracting renewed interest. For more details, see Ethereum stability.
