Extended Crypto Etf Outflows Shows Institutions Disengaging: Glassnode

Bitcoin and Ether ETFs have recorded sustained outflows since early November, which Glassnode says signals institutional disengagement.

Bitcoin and Ether exchange-traded funds have seen a prolonged streak of outflows, indicating that institutional investors have disengaged with crypto, said the analytics platform Glassnode.

Since early November, the 30-day simple moving average of net flows into US spot Bitcoin (BTC) and Ether (ETH) ETFs has turned negative, Glassnode said on Tuesday.

“This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction across the crypto market,” it added.

Flows into crypto ETFs usually lag the spot markets for the tokens, which have been trending down since mid-October.

The ETFs are also considered a bellwether for institutional sentiment, which has been a market driver for most of this year but seemingly turned bearish as the wider market has contracted.

Coinglass said aggregate Bitcoin ETF flows have been in the red for the past four consecutive trading days. However, BlackRock’s iShares Bitcoin Trust (IBIT) has seen minor inflows over the past week.

“Crypto ETF selling pressure is back,” the Kobeissi Letter said on Tuesday. It reported that crypto funds recorded $952 million in outflows last week, and investors have now withdrawn capital in six out of the last ten weeks.

Related: BlackRock pins Bitcoin ETF as major theme alongside T-bills, tech stocks

Despite the recent outflows, the industry-dominant BlackRock fund has seen $62.5 billion in inflows since inception, eclipsing all rival spot Bitcoin ETFs.

Source: CoinTelegraph