Bitcoin and Ethereum spot ETFs have continued to see weak demand as their monthly average net flows have remained in the red.
Bitcoin and Ethereum Spot ETFs Have Been Seeing Net Outflows
As noted by on-chain analytics firm Glassnode in a new mail On X, the average net flow of Bitcoin and Ethereum spot exchange-traded funds (ETFs) has remained negative recently. Spot ETFs are investment vehicles that allow investors to gain indirect exposure to an underlying asset. In the case of cryptocurrencies, this means that traders never have to interact with the blockchain infrastructure themselves. Instead, the fund purchases and custody tokens on your behalf.
ETFs and similar investment vehicles for digital assets are available in various parts of the world, but currently, the most dominant funds are those based in the United States. The US Securities and Exchange Commission (SEC) first approved spot ETFs for Bitcoin in January 2024 and for Ethereum in July 2024. Since their inception, ETFs have become a cornerstone of the market, tapping into demand from traditional institutional entities.
First, here is a chart showing the trend in the 30-day simple moving average (SMA) of Bitcoin spot ETF net flow over the past few years:
These funds appear to have been facing a wave of outflows in recent weeks | Source: Glassnode on X
As As shown in the chart above, US Bitcoin spot ETFs saw their 30-day SMA net flow fall into negative territory in November, suggesting that net capital outflows began..
Since then, the indicator has remained largely within this territory, although the capital hemorrhage has slowed of late. Earlier this month, the net inflow from the 30-day SMA even moved into the positive zone, but the net inflows lasted only briefly, and the indicator quickly returned to the red region.
A similar pattern has also been observed with Ethereum spot ETFs, as the chart below shows.
How the 30-day SMA netflow of the US ETH spot ETFs has changed since the funds began trading | Source: Glassnode on X
From the chart, you can see that US Ethereum spot ETFs have also seen their 30-day SMA net flow return to the underwater zone after a brief wave of net capital inflows.
This means that interest in the digital asset market as a whole continues to decline among ETF users. “There are no signs of renewed demand,” the analysis firm said. It now remains to be seen how long the wave of capital outflows will last.
BTC Price
At the time of writing, Bitcoin is trading around $88,000, down 3.5% over the last seven days.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image of Dall-E, chart from TradingView.com
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