Bitcoin ETF Inflows Return After 7-Day Bleed Of Over $1 Billion

• Bitcoin and Ethereum spot ETFs recorded their first net inflows on Tuesday after an extended streak of outflows.
• Crypto prices showed limited immediate reaction to the ETF flow reversal.
• Solana spot ETFs continued to attract capital with modest inflows.

Investor demand returned to crypto-linked funds on Tuesday, with Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds posting their first net inflows after a week-long stretch of sustained outflows for the former.

According to data from Farside, Bitcoin spot ETFs recorded $355 million in net inflows on the day, reversing seven consecutive sessions of withdrawals that totaled more than $1 billion. The run marked the longest single-day net outflow streak for Bitcoin ETFs since September, according to Santiment.

BlackRock’s iShares Bitcoin ETF (IBIT) led the group, attracting $143.7 million. Retail sentiment around the fund on Stocktwits remained in ‘bearish’ territory over the past day, with chatter at ‘normal’ levels.

Ethereum ETFs Turn Positive After Four-Day Slide

Ethereum spot ETFs also saw a reversal, posting $67.9 million in net inflows after four straight days of outflows exceeding $195 million. Grayscale’s Ethereum Trust (ETHE) accounted for the bulk of the inflows, drawing $50.2 million. On Stocktwits, retail sentiment around the fund also remained in ‘bearish’ territory, but chatter rose to ‘low’ from ‘extremely low’ levels over the past day.

Solana (SOL) spot ETFs continued to record inflows amounting to $5.2 million on Tuesday.

Price Action Lags ETF Flow Reversal

The late-December outflows were largely attributed to year-end portfolio rebalancing, thin holiday liquidity, and tax-loss harvesting strategies, in which investors sell assets to offset gains elsewhere.

Historically, ETF flows have shown a positive correlation with spot Bitcoin and Ethereum prices. However, on Wednesday morning, Bitcoin and Ethereum price movements were fairly muted.

Bitcoin’s price moved 1% higher in the last 24 hours to around $88,400. On Stocktwits, retail sentiment around the apex cryptocurrency remained in ‘bearish’ territory amid ‘normal’ levels of chatter over the past day. Meanwhile, Ethereum’s price traded flat, stuck below the $3,000 mark. Retail sentiment around the leading altcoin was also in ‘bearish’ territory amid ‘low’ levels of chatter over the past day. 

Read also: Arthur Hayes Continues Ethereum Exit With Fresh $2 Million DeFi Token Buying Spree

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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