Bitcoin and Ether ETFs bleed amid market swings

Published 17/02/2025, 15:56
© Reuters.

Bitcoin and ether exchange-traded funds (ETFs) reported substantial net outflows, reflecting a week of caution among investors. Between February 10 and February 14, bitcoin ETFs saw a combined net outflow of $581.23 million, with Fidelity's FBTC experiencing the most significant weekly loss of $282.12 million.

The week was characterized by a notable downturn, with four consecutive days of outflows for bitcoin ETFs, briefly interrupted by a single day of inflows. Ether ETFs also faced a challenging period, with a net outflow of $26.3 million. Grayscale's ETHE was particularly impacted, with a net exit of $56.46 million over the course of two days of outflows and three days of inflows.

Investor sentiment appears to be influenced by the recent market volatility and broader economic uncertainties, leading to a cautious approach, especially towards bitcoin ETFs. Despite a small inflow on the last trading day of the week, the overall trend suggests a preference for safer investments during these volatile times.

In contrast, ether ETFs showed a more mixed performance, with the inflows indicating a continued interest in ether, possibly due to the network's ongoing developments and anticipated upgrades. This interest has maintained some level of confidence in ether's potential despite the prevailing market skepticism.

As of February 17, the price of bitcoin (BTC) stands at $96,167, down 0.9% from its previous closing price, while ether (ETH) is trading at $2,747, up 2.1%. These price actions are in line with the ETF flow patterns observed, with bitcoin's price dip corresponding to the significant outflows and ether's relative price stability reflected in its ETF activities.

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