Zero Inflows Recorded Across U.S. Bitcoin, Ethereum ETFs

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What to Know:
  • U.S. ETFs report zero inflows amid reduced demand and liquidity.
  • Bitcoin and Ethereum prices affected; BTC at $109,800, ETH at $3,850.
  • Market reactions reflect increased outflows and dwindling institutional interest.

All major U.S. spot Bitcoin and Ethereum ETFs recently recorded zero inflows, highlighting a shift in investor sentiment as outflows hit $470.7 million and $81.4 million respectively.

This event reflects diminished demand, impacting liquidity and prices for BTC and ETH, as institutional traders pivot strategies amid Federal Reserve’s uncertain economic outlook.

U.S. spot Bitcoin and Ethereum ETFs recently recorded zero inflows, reflecting a shift in investor sentiment.

The event underscores declining interest and liquidity for cryptocurrencies, resulting in falling BTC and ETH prices.

ETFs Report Zero Inflows Amid Market Shift

All major U.S. spot Bitcoin and Ethereum ETFs recorded zero inflows, indicating a sudden market shift. Data sources noted a concurrent increase in outflows and stunted demand for these assets.

The situation involves key ETF issuers like BlackRock, Grayscale, and Bitwise, with no new statements from leadership. Recent monetary policy uncertainty may have influenced investor behavior.

BTC and ETH Prices Drop as Liquidity Wanes

Bitcoin and Ethereum prices fell, with BTC at $109,800 and ETH at $3,850. Market analysts cite reduced liquidity as a core issue impacting institutional involvement. “There remains considerable uncertainty around future rate cuts, and we are ready to adjust as the data dictate.” — Jerome Powell, Chair, Federal Reserve.

The financial implications include increased market volatility, as investor sentiment cools. This shift has driven futures demand lower and challenged institutional relationships.

Inflow Patterns Mirror 2022 Fed Events

Similar inflow patterns were last reported during major Fed events in 2022, when spot crypto products also saw risk-off flows. Past data suggests potential price corrections.

Based on current trends, further market adjustments may occur as long-term holders liquidate positions. Historical patterns of similar events suggest cautious investor repositioning.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
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Thane Morrison is a diligent crypto news author and keen blockchain and digital finance enthusiast. He writes insightfully correct engaging content on Bitcoin, altcoins, DeFi, and NFTs to help readers understand how this relentless, changing world works. Simplification and empowerment are what he really stands for and enables readers to keep their heads in the game when making vital decisions in such a demanding space.

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