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  • Crypto ETFs diverge: Bitcoin suffers $60M outflows; ETH, SOL, XRP funds in green

    Crypto ETFs diverge: Bitcoin suffers $60M outflows; ETH, SOL, XRP funds in green

    Crypto ETFs updates

    • BTC ETFs recorded $60.48M withdrawals on December 8.
    • Ethereum funds extended their latest momentum with $35.49M inflows.
    • XRP and Solana ETFs ended yesterday with gains amid prevailing demand.

    The digital tokens space remains choppy ahead of the December 10 Federal Reserve decision on interest rates.

    Crypto exchange-traded funds, which have become vital in gauging institutional appetite in these risk assets, confirm the current uncertainty.

    Bitcoin ETFs suffer outflows despite IBIT’s gains

    Interest around BTC ETFs remained negative yesterday, with the products recording net outflows amounting to $60.48 million (SoSoValue data).

    The significant withdrawals came as investors reacted to the weekend’s sluggish performance across the crypto landscape.

    Bitcoin failed to break $92,000 again, currently trading at $90,150.

    However, Monday was not gloomy for all BTC ETF issuers.

    BlackRock proved its resilience and dominance as its IBIT attracted $28.76 million in inflows.

    While funds like Graycale’s GBT (-44.03M) and Fidelity’s FBTC (-39.44M) saw substantial withdrawals on December 8, IBIT’s steadiness indicates that profit taking, not a shift in interest, likely triggered the mixed flows into Bitcoin.

    Ethereum ETFs flip positive

    While Bitcoin bled on December 8, Ethereum exchange-traded funds turned positive with $35.5 million inflows.

    Notably, the funds recorded substantial exits in the previous two sessions, on December 4 (-41.5M) and December 5 (-75.2M).

    Indeed, Ethereum has been on the investor radar lately following its Fusaka upgrade, which targets enhanced speed, scalability, and lower costs for Ether-based Layer 2 platforms.

    Moreover, the inflows indicate that investors are viewing Ethereum as a legitimate token for portfolio diversification beyond Bitcoin.

    Indeed, the second-largest crypto by value is experiencing renewed interest from institutional participants.

    For example, BlackRock is seeking the SEC’s authorization for a new staked Ether trust ETF – the ETHB.

    The proposed product differs from BlackRock’s popular ETHA trust in that the staking Ether trust will track Ethereum’s performance and include incentives gained from the trust’s staked Ether.

    ETH is trading at $3,124 after gaining more than 10% the past seven days.

    Solana ETFs see steady demand

    Solana spot products closed the previous day with $1.2 million inflows.

    While the figure remains modest, it reflects consistent demand for SOL ETFs.

    Monday’s inflows have extended their winning streak to three days, demonstrating appetite for these products despite broader turmoil.

    Solana exchange-traded funds have attracted roughly $639 million since their late October debut.

    Meanwhile, SOL price is hovering at $133, down 2% the past 24 hours.

    XRP ETFs steal the show

    Ripple’s crypto asset stood out on December 8, with a net inflow of $38.04 million, eclipsing peers for the day.

    Grayscale led as its GXRP drew over $810K in fresh capital on Monday.

    Also, Canary, Bitwise, and Franklin’s XRP exchange-traded funds recorded notable daily gains.

    Regulatory clarity and XRP’s unique utility in cross-border transactions have elevated the altcoin’s appeal among institutional investors.

    Nevertheless, the December 8 ETF performance sends a clear message.

    Investors are now diversifying into other cryptos beyond Bitcoin.

    Altcoin ETFs are gaining traction for their added advantages, as the crypto industry gains increased acceptance in mainstream finance.

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  • Bitcoin ETFs see first-ever outflow of $751 million as Ethereum funds gain $3.9 billion

    Bitcoin ETFs see first-ever outflow of $751 million as Ethereum funds gain $3.9 billion

    Bitcoin ETFs see first-ever outflow of $751 million as Ethereum funds gain $3.9 billion

    • Bitcoin ETFs saw a $751 million net outflow in August, a first-ever event.
    • Ethereum ETFs absorbed a massive $3.9 billion in net inflows in August.
    • BTC’s price has fallen below key short-term holder cost basis levels.

    A stunning and unprecedented reversal has rattled the very foundations of the cryptocurrency market.

    For the first time since their celebrated launch, the institutional tide that carried Bitcoin to a record high has turned, with spot ETFs bleeding hundreds of millions of dollars in August.

    At the same time, a powerful and quiet current of capital has been flowing into Ethereum, signaling a potential changing of the guard and the beginning of a major rotation story that could define the rest of the year.

    The scale of the divergence is stark. In August, just weeks after they powered the asset to a 124,000 dollar all-time high, Bitcoin spot funds shed a staggering 751 million dollars in net outflows.

    In that same period, Ethereum ETFs quietly absorbed an incredible 3.9 billion dollars, a profound role reversal that suggests institutional investors may be fundamentally rebalancing their crypto exposure.

    Bitcoin’s fragile foundation

    The pain for Bitcoin is not just in the ETF flow data; it’s etched into the blockchain itself. A recent report from the analytics firm Glassnode paints a picture of a market slipping from euphoria into deep fragility.

    The analysis shows Bitcoin’s price has fallen below the cost basis of both 1-month and 3-month holders, a critical development that leaves a huge cohort of recent investors underwater and dramatically increases the risk of a deeper, panic-driven sell-off.

    If the price continues to slide below the six-month cost basis near 107,000 dollars, Glassnode warns, it could accelerate losses toward the crucial 93,000 to 95,000 dollar support zone, a dense cluster of accumulation by long-term holders.

    Prediction markets are echoing this cautious sentiment.

    Traders on Polymarket now assign a 65 percent chance that Bitcoin revisits 100,000 dollars before it retakes 130,000 dollars, a clear sign that the July rally is now seen as overextended and unsustainable without a renewed wave of institutional demand.

    Ethereum: the quiet ballast

    While Bitcoin falters, Ethereum is emerging as a quiet and powerful source of stability. Its ETF inflows have been remarkably consistent, logging positive net subscriptions in 10 of the last 12 months.

    August’s 3.9 billion dollar haul has been the engine behind the token’s impressive 25 percent gain over the past 30 days, a stunning outperformance during a brutal market-wide correction.

    The conviction behind Ethereum’s rise is firm. Polymarket traders see over 90 percent odds of the asset holding above 3,800 dollars into early September, and longer-term bets give it a 71 percent chance of finishing 2025 above the coveted 5,000 dollar mark.

    As Bitcoin’s institutional tide flows out, Ethereum’s steadier bid is becoming the market’s new anchor. The great rotation may be in its early stages, but the signs are unmistakable.

    A new power dynamic is taking shape, and the battle for crypto’s throne is just beginning.

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  • Short-Bitcoin funds saw $10M in inflows last week

    Short-Bitcoin funds saw $10M in inflows last week

    • CoinShares data shows crypto investment products recorded minor outflows of $2 million.
    • But Bitcoin saw a third straight week of outflows totaling $12 million.
    • Short-bitcoin funds saw inflows of $10 million amid negative sentiment driven by US economic data.

    Digital asset investment products recorded yet another week outflows this past week as macro data continued to weigh on investor sentiment, according to asset manager CoinShares.

    While weekly outflows across crypto-related products was a minor $2 million, the broader market sentiment was negative as indicated by the large inflows into short investment products.

    Short-Bitcoin inflows hit $10 million

    Investment products tied to the world’s largest cryptocurrency Bitcoin recorded a total of $12 million in outflows last week, a third consecutive week of such action. Investors also bet huge on the price of Bitcoin going down that week, with inflows into short bitcoin funds rising to $10 million.

    According to CoinShares, the negative sentiment around BTC price last week largely came from the United States.

    “Opinions remain polarised though, with the US seeing outflows totalling US$14m, where recent macro data has increased fears amongst investors that the US Federal Reserve (FED) will be more hawkish than expected,” CoinShares head of research James Butterfill wrote.

    As we highlighted, the past week was punctuated by the hot economic data (the Producer Consumer Expenditure (CPE) index that suggested inflation was still a key headwind. 

    Indeed, the market reacted negatively to the macro data, with Bitcoin price dropping to lows of $22,770 on the Bitstamp crypto exchange. However, BTC is back above $23,400.

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