Bitcoin and Ethereum ETFs may only experience temporary fluctuations before the next round of increases
For the first time in over four months, Bitcoin and Ethereum ETFs have seen consecutive days of outflows, totaling $1.9 billion, of which over $1.25 billion was withdrawn from spot Bitcoin ETFs and over $600 million from Ethereum ETFs. This marks the first time since late March to early April that both types of funds have experienced consecutive days of outflows simultaneously.
The outflow of funds is due to investors' concerns about the impact of tariffs, the cooling of the U.S. economy, coupled with disappointing employment data and the escalation of trade wars under the Trump administration. Market enthusiasm has cooled, leading to declines in the prices of Bitcoin and Ethereum, with BTC briefly dropping below $112,500 and ETH falling to $3,380.
However, this trend may be temporary. The outflows are consistent with the overall pullback in the financial markets and are relatively small (Bitcoin outflows are about 1% of assets). Additionally, spot cryptocurrencies benefit from macro demand for Bitcoin and regulatory changes, with a positive trend expected in the second half of 2025 and beyond. The approval of ETF equity staking may serve as a catalyst for inflows, so there is no need for excessive concern.
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