U.S. institutions slashed Bitcoin ETF holdings by $6.2B in Q1, marking the first major pullback since spot ETF approval.
Ethereum ETFs gained $513M in a week as ETH staking, L2 growth, and rotation from Bitcoin fuel renewed institutional interest.
ETH/BTC nears breakout at 0.025 BTC, with a target of 0.045 BTC, signaling potential Ethereum outperformance in the coming weeks.
U.S. institutional investors slashed Bitcoin ETF exposure by 23% in Q1 2025—the first drop since spot ETFs launched. Holdings shrank from $27.4 billion to $21.2 billion, reflecting sharp sentiment deterioration and renewed caution across crypto markets.
Data shows 13-F filers cut Bitcoin ETF positions from $27.4B to $21.2B in Q1—a $6.2B reduction. The reversal follows three consecutive quarters of aggressive accumulation, highlighting a pivot in professional strategy.
Retail and non-institutional investors also pulled back, trimming holdings from $76.7B to $ 71.1 B. However, the 7% drop was notably milder than the 23% institutional divestment. Some observers see this as a turning point, hinting that professionals may be leading a broader correction.
Institutional share of total ETF holdings fell from 26.3% to 22.9%, reinforcing the scale of the pullback. Although non-filers remain dominant, the sharp institutional exit is weighing heavily on overall market sentiment.
ETF Netflows Confirm Persistent Sell Pressure
Daily and weekly ETF flow data suggest bearish momentum is intensifying. Bitcoin ETFs saw net outflows of 2,368 BTC on June 6, equivalent to $ 248.2 M. The 7-day total stood at 8,050 BTC or $ 843.6 M.
https://twitter.com/lookonchain/status/1931006060774760690
ARK 21Shares (ARKB) posted the largest daily outflow at 998 BTC, while BlackRock and Fidelity lost over 2,000 BTC each during the week. Grayscale’s GBTC was the lone standout, attracting 1,228 BTC in inflows, hinting at issuer-specific investor confidence.
What’s unfolding here suggests deeper forces at work. While retail inflows slow, institutional exits appear more urgent, potentially reflecting macro triggers or a recalibration of crypto exposure.
Ethereum ETFs Gain While Bitcoin Bleeds
Ethereum ETFs are attracting fresh capital amid Bitcoin’s stall. Total ETH ETF holdings rose to 3.76 million ETH ($9.48B), with a 7-day net inflow of 214,316 ETH, equal to $ 513 M. BlackRock’s ETHB led inflows with 116,996 ETH.
Franklin’s EZET and Grayscale’s ETHE also posted steady gains. The sentiment among traders is split; some believe Ethereum is poised for leadership as staking, L2 growth, and institutional acceptance rise.
ETH/BTC Signals Structural Rotation
Technical charts show ETH/BTC hovering at 0.0239 BTC inside a descending channel. It is clear that a breakout could target 0.045 BTC, with current resistance near 0.025 BTC being tested.
Momentum remains constrained, but the structure favors Ethereum. As Bitcoin retreats, Ethereum may be quietly setting the stage for dominance.
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