#WalletActivityInsights
ETF Flows and Market Impact
With the market in a contraction phase, institutional interest in Bitcoin and Ethereum has slowed based on spot ETF flows. By normalizing net inflows against each asset’s native spot volume, we can gauge the weight and influence of the ETFs on market dynamics.
Bitcoin ETFs saw several outflows exceeding $200M/day last week, however this was followed by a strong rebound in buy-side activity, exceeding 8% of global spot volume, and highlighting institutional demand (akin to ‘buy the dip’ behavior).
Ethereum ETF demand has cooled significantly and remains much smaller in scale compared to Bitcoin. ETF activity for ETH is hovering close to zero in terms of net flows in and out, suggesting a lack of strong traditional investor demand and participation.
This divergence has been a theme of this market cycle thus far and reinforces Bitcoin’s dominant role within the institutional asset mix. Ethereum continues to struggle to attract large, sustained inflows, which further explains its relative underperformance in recent years.