US-listed spot Bitcoin exchange-traded funds (ETFs) experienced their first net outflows in over a week on Thursday, ending a seven-session run of steady inflows. These ETFs recorded $225.2 million in net outflows for the day, as reported by data provider SoSoValue.
Shift in ETF inflows signals changing sentiment
Spot Bitcoin ETFs had attracted nearly $1 billion in net inflows over the previous seven trading sessions. Despite the setback on Thursday, the cumulative weekly inflow figure remained positive at approximately $274 million. This reversal from the streak of inflows reflects a shift in market sentiment, as the ETFs had not seen a net outflow since July 13.
The sudden outflow comes amid a short-lived drop in Bitcoin’s price. The world’s largest cryptocurrency temporarily fell below $65,000 during the day and recovered to $65,403 at the time of publication. Data from CoinGecko showed that Bitcoin’s intraday low touched $64,600, following a decline in US stocks influenced by renewed geopolitical tensions between the US and Iran.
Market sentiment cools as fear rises
Investor sentiment toward Bitcoin softened as global risk factors emerged. The Crypto Fear & Greed Index, monitored by Alternative.me, fell by 3 points on Friday to register 28. This reading places the index firmly in the “fear” category, indicating increased caution among market participants after the ETF outflows and price volatility.
The Crypto Fear & Greed Index is a widely used gauge that evaluates Bitcoin market sentiment based on factors like volatility, volume, and social media trends. Readings below 50 generally reflect cautious or fearful investor behavior, signaling hesitancy in the market.
Mini dictionary: SoSoValue, a data analytics platform specializing in cryptocurrency ETF flows and on-chain metrics.
Despite recording $225.2 million in net outflows on Thursday, spot Bitcoin ETFs still attracted about $274 million in net inflows for the week.
Ether ETFs continue inflow momentum
US-listed spot Ether ETFs bucked the outflow trend and reported a fifth consecutive day of net inflows. According to SoSoValue, these Ether-based funds recorded $26.3 million in net inflows on Thursday, reflecting ongoing investor interest in Ethereum’s token despite recent market turbulence.
This divergence between Bitcoin and Ether ETF flows underscores differences in investor sentiment and risk appetite across the two largest cryptocurrencies.
| ETF Product | Net Inflow/Outflow (Thursday) | Inflow Streak (days) |
|---|---|---|
| Spot Bitcoin ETFs | -$225.2 million | 0 (streak ended) |
| Spot Ether ETFs | +$26.3 million | 5 |
BitMEX, a well-known cryptocurrency derivatives exchange, was also in focus as its native token suffered a significant decline following the announcement of its platform shutdown, illustrating the wider volatility across digital asset markets.
Mini dictionary: BitMEX, founded in 2014, is a cryptocurrency derivatives exchange that offers leveraged trading but faced regulatory pressure leading to operational challenges.
