BTC Exchange-Traded Funds See $119M Injection While Ethereum Continues Downward Trend
Exchange-traded funds tracking Bitcoin saw a return to positive territory with $119 million in net inflows on Tuesday even as prices declined, while Ethereum funds continued their withdrawal pattern for a sixth consecutive session, accumulating $408 million in total outflows.
Exchange-traded funds focused on spot Bitcoin in the United States made a comeback to positive net inflows on Tuesday, while ETFs tracking Ether saw their outflow pattern extend into a sixth consecutive trading day.
The inflows into Bitcoin-focused ETFs reached $119 million in net additions on Tuesday, marking a reversal from the $90 million in outflows experienced on Monday, based on information from SoSoValue data.
The price of Bitcoin declined from levels above $86,600 on Tuesday to trade beneath the $84,000 mark. As of the time of publication, BTC was changing hands at $83,971, representing a decline of 2.1% during the preceding 24-hour period, based on CoinGecko data.
A contributor to CryptoQuant known as MorenoDV indicated that Bitcoin's price recovery encountered heightened profit-taking activity as the cryptocurrency traded at a significant premium above the estimated cost basis of $68,900 for active traders. The sustainability of this recovery would hinge on whether new demand could successfully absorb that selling pressure, he stated.
In contrast, Ether-focused ETFs kept hemorrhaging capital, registering $202 million in net outflows on Tuesday, marking a sharp increase from approximately $51 million on Monday. The cumulative outflows throughout this period climbed to roughly $408 million.
Additional cryptocurrency ETFs also demonstrated varied flow patterns on Tuesday. Exchange-traded funds tracking XRP pulled in $3.1 million, whereas Solana (SOL) ETFs witnessed $3.7 million in capital exits. Zcash (ZEC) ETFs reported zero net flows following outflows during the preceding two trading sessions.