U.S. spot crypto ETF capital flows showed a clear divergence last week. Bitcoin ETF experienced a large net outflow, ending three consecutive weeks of strong inflows; Ethereum ETF, on the other hand, turned to a net inflow, indicating that the institutional allocation pace for these two assets is beginning to diverge.
Bitcoin ETF ends three weeks of net inflow
According to SoSoValue data, US spot Bitcoin ETF saw a total net outflow of $462.7 million over the four trading days last week. From September 8th to 11th, there were four consecutive days of capital withdrawals, with Thursday recording a single-day net outflow of $282.7 million, which was the largest single-day outflow since July. By Friday, the outflow had slowed down to $13.2 million.
Despite a pullback last week, Bitcoin ETF still recorded a cumulative net inflow of approximately $307.3 million as of last Friday in September, indicating that the overall capital situation has not turned negative within the month.
Bitcoin still suppressed below the $80,000 mark
As funds were withdrawn, the price of Bitcoin still failed to effectively surpass the key milestone of $80,000. Reports indicate that on Monday, BTC traded around $77,900, and the previous round of rebound was not sustained, leading to a more cautious risk appetite in the market.
ETF The weakening of cash flow and price performance reflects that some investors have chosen to reduce their exposure in the current range, especially after short-term rebounds failed to achieve sustained breakthroughs.
Ethereum ETF raised $197 million in the same period
Contrary to Bitcoin, US spot Ethereum ETF saw a total net inflow of $196.9 million within the same four-day trading week. Although the daily flows were not stable throughout the week, the overall trend remained net inflow.
Among them, Ethereum ETF saw a net outflow of $24.3 million on Tuesday, turned into a net inflow of $34.7 million on Wednesday, and then experienced another net outflow of $29.9 million on Thursday. Nevertheless, the total amount for the week was still significantly positive, indicating that funds continued to flow into related products.
The market is focusing on the Federal Reserve's decision on September 16th.
Next, the market will also face new factors that could trigger volatility. The Federal Reserve is scheduled to announce its next interest rate decision on September 16th. Reports suggest that rising inflation and potentially continued tight monetary policy are suppressing the performance of risk assets, which may also be one of the reasons why Bitcoin ETF investors have recently become more cautious.
In this context, the subsequent redemptions and subscriptions of spot ETF will still be important indicators for observing institutional capital preferences and the risk sentiment in the crypto market.
