As of January 13, 2025, Bitcoin and Ethereum exchange-traded funds (ETFs) have experienced significant outflows, signaling a shift in investor sentiment and possibly reflecting broader market volatility. Recent data highlights a considerable reduction in holdings, with Bitcoin ETFs facing a net outflow of 1,509 BTC, and Ethereum ETFs seeing a much larger net outflow of 24,393 ETH. These movements suggest a retreat by institutional investors in both Bitcoin and Ethereum, possibly in response to the ongoing market corrections.
According to Lookonchain, Bitcoin ETFs have witnessed a net outflow of 1,509 BTC, equating to approximately $138.89 million in losses. The most significant outflows were seen from iShares (Blackrock) Bitcoin Trust (IBIT), which experienced a large withdrawal of 1,933 BTC, valued at $177.93 million. Despite this significant outflow, Blackrock’s Bitcoin ETF still holds 555,949 BTC, worth approximately $51.17 billion.
Other Bitcoin ETFs, such as Fidelity’s Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB), have experienced more modest changes. While Fidelity’s fund saw a slight inflow of 175 BTC over the past day and 153 BTC over the past week, ARK 21Shares Bitcoin ETF experienced a decline of 2,228 BTC. Overall, Bitcoin ETFs continue to show a mixed but generally negative trend in investor flows.
The sharp withdrawal from iShares Blackrock Bitcoin Trust may be a reflection of cautious sentiment in the market, especially as institutional investors adjust their portfolios in the face of volatility. It also highlights the potential impacts of broader market conditions on large institutional funds.
Ethereum ETFs Suffer Even Larger Losses
Ethereum ETFs have seen a much more substantial outflow, with a net loss of 24,393 ETH, worth approximately $74.37 million. The largest contributor to this outflow is Fidelity’s Ethereum Fund, which reported an outflow of 19,999 ETH, equivalent to about $60.98 million. The fund currently holds 395,504 ETH, valued at $1.21 billion.
Similarly, Grayscale’s Ethereum Trust (ETHE), which is one of the largest Ethereum ETFs, has seen a withdrawal of 2,706 ETH in total, while iShares (Blackrock) Ethereum Trust (IBETH) also experienced a notable outflow of 1,037 ETH. Despite the withdrawals, Grayscale’s Ethereum Trust still holds 1,402,071 ETH, a substantial holding valued at $4.12 billion.
The outflows from Ethereum ETFs are concerning, especially given the magnitude of the losses in the market over the past few weeks. Ethereum’s market position continues to be impacted by these withdrawals, potentially signaling a reduction in institutional confidence in Ethereum as the cryptocurrency faces both regulatory scrutiny and competition from other blockchain technologies.
The significant outflows from both Bitcoin and Ethereum ETFs underscore a shift in investor sentiment, with large institutional funds pulling back in response to market fluctuations. As of January 13, 2025, Bitcoin and Ethereum ETFs combined have lost more than $200 million in total value due to outflows. This trend suggests that while both Bitcoin and Ethereum are still among the most significant cryptocurrencies by market cap, institutional investors are becoming increasingly cautious, perhaps anticipating further market corrections. The situation warrants close monitoring as market dynamics continue to evolve and could impact future investments in both Bitcoin and Ethereum.
