Crypto: Spot Bitcoin, Ether Etfs See Heavy Outflows As ‘institutional...
Crypto markets dip as global macro pressures mount, with US-EU trade tensions and Japanese bond sell-offs fueling institutional caution.
Spot Bitcoin and Ether exchange-traded funds (ETFs) faced heavy outflows on Tuesday, as macroeconomic and geopolitical uncertainty continued to weigh on markets.
Spot Bitcoin (BTC) ETFs recorded $483.4 million in daily outflows, with the Grayscale Bitcoin Trust ETF (GBTC) leading the selling at $160.8 million, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) at $152 million, according to data from SoSoValue.
Spot Ether (ETH) ETFs posted $230 million in net outflows, ending a five-day streak of positive flows, with BlackRock's ETHA seeing $92.3 million exit. Spot XRP (XRP) ETFs also registered their largest single-day outflow yet at $53.3 million, while Solana (SOL) ETFs bucked the trend with $3 million in net inflows.
“ETF outflows point to institutional caution amid geopolitical trade tariffs and broader risk-off sentiment,” Vincent Liu, chief investment officer at trading firm Kronos Research, told Cointelegraph. “Japan’s bond sell-off and rising JGB yields are tightening global liquidity and pressuring risk on assets,” he added.
Related: Bitcoin holders see first 30-day stretch of realized losses since late 2023
The ETF withdrawals coincided with broader weakness in crypto markets, as Bitcoin fell below $89,000 after surpassing $97,000 last week, and Ether traded under $3,000. Analysts attributed the downturn to ongoing macro pressures, including US-EU trade tensions over Greenland and panic selling of Japanese government bonds, which weighed on global liquidity and risk assets.
“Traders are watching for macro updates on trade tariffs, with attention turning to U.S. Initial Jobless Claims on Thursday, Jan. 22 (8:30 AM). A weaker print could reinforce growth concerns and risk-off sentiment,” Liu said.
Meanwhile, despite Bitcoin’s recent drop, larger holders continued to accumulate. Addresses holding between 10 and 10,000 BTC added roughly 36,300 coins over the past nine days, while wallets with less than 0.01 BTC reduced holdings, according to Santiment.
Related: Bitcoin institutional demand remains strong: CryptoQuant
Source: CoinTelegraph
