Bitcoin ETFs return to $562M after spending $1.5B.
BTC exchange-traded funds (ETFs) experienced another rally on Monday amid challenging market conditions for BTC and broader digital assets.
Spot Bitcoin (BTC) ETFs pulled out nearly $562 million, breaking a four-day outflow. Last week saw $1.5 billion in outflows, according to Soso Value data.
Despite the ups and downs, analysts warned that ETFs and the broader market could face continued pressure from institutional selling and macro uncertainty, with recent support likely to stick around $84,000 in the ETF's cost base.
The influx came as Bitcoin rebounded on Monday after dipping just below $75,000 over the weekend and rose above $79,000 during the day, according to CoinGecko.
Bitcoin ETFs come out at $1 billion a year
The new $562 million inflow represents a significant portion of the year-to-date outflows for spot Bitcoin ETFs, which reached $1 billion as of Tuesday.
So far this year, total outflows have reached $4.6 billion, offsetting revenues of $3.6 billion, according to Soso Value data.
In contrast, Ether (ETH) ETFs failed to reach any gains on Monday, posting a modest loss of $2.9 million.
According to Galaxy Digital's Alex Thorn, the value of ETF flows is now underwater.
In addition to the youth, Bitcoin's price has fallen below the ETF's flow cost basis, Alex Thorne, head of research at Galaxy Digital, said in a market update on Monday on X.
“BTC is currently trading 7.3% below the average ETF creation cost base ($84k), although it was trading 10% below that level on Saturday, Jan. 31,” Thorn added.
“BTC has not traded below the average ETF cost base since hitting a low of -9.9% in early summer and fall 2024.
Thorn pointed to Bitcoin's confirmed price of $56,000, noting that BTC has historically found support “around or a little bit below” that level before bull markets.
James Butterfill, head of research at CoinShares, said the market faces unfavorable capital flows, Bitcoin's disconnection from global money supply trends, geopolitical tensions and uncertainty over US monetary policy, as Kevin Warsh was named Federal Reserve chairman.
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“In the longer term, however, the outlook is constructive, as structural concerns about currency depreciation remain and current liquidity trends indicate the possibility of a delay,” Butterfill added.
On Monday, CoinShares added another $1.7 billion in crypto exchange-traded funds last week, doubling from the previous week.
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