Bitcoin ETFs End Six-Day Outflow Streak With $240M Inflows

United States spot Bitcoin exchange-traded funds (ETFs) recorded a $239.9 million net inflow on Thursday, ending a six-day slump of persistent outflows draining nearly $1.4 billion from the market. 

According to data from Farside Investors, the reversal comes after a turbulent week, during which profit-taking occurred, driven by macroeconomic uncertainty that led to redemptions across the largest institutional Bitcoin (BTC) investment vehicles. 

The rebound was led by asset manager BlackRock, which added $112.4 million to its iShares Bitcoin Trust (IBIT), followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $61.6 million. The ARK 21Shares Bitcoin ETF (ARKB) reported $60.4 million, while Grayscale’s GBTC, which had experienced consistent outflows since mid-October, showed no changes. 

In total, the six-day sell-off marked one of the steepest pullbacks since the ETFs started trading in January. 

How Ether and Solana ETFs performed

Similar to spot Bitcoin ETFs, the exchange-traded products tracking Ether (ETH) also saw a six-day outflow streak on a slightly smaller scale. 

According to SoSoValue, spot ETH ETFs experienced a six-day sell-off, resulting in approximately $837 million being withdrawn from the ETH-based crypto investment products. This was finally reversed on Thursday, when spot Ether ETFs saw small gains of $12.51 million.

Spot Solana (SOL) ETFs have performed well since their launch on Oct. 28. SoSoValue data shows that SOL-based products saw $322 million in inflows since their launch and haven’t had a day of net outflows yet.

Related: Bitcoin bulls retreat as spot BTC ETF outflows deepen and macro fears grow

ETFs are a key driver for liquidity in crypto

On Thursday, crypto market maker Wintermute assigned ETFs as one of the three key pillars of liquidity for the crypto sector. 

In a blog post, Wintermute stated that liquidity remains the key driving force behind every crypto cycle, arguing that it has a greater impact than technological developments.

Wintermute said that stablecoins, ETFs and digital asset treasuries were the three major pillars for crypto liquidity, and pointed out that liquidity inflows in all three sectors have reached a plateau. 

A recent survey from brokerage giant Schwab Asset Management revealed that 52% of respondents plan to invest in ETFs, while 45% expressed interest in crypto-linked ETFs.