Spot Bitcoin exchange-traded funds (ETFs) experienced significant turbulence last week, recording a staggering $1 billion in net outflows and breaking a six-week growth streak that had previously attracted a total of $3.4 billion. The week began with a cautious sense of optimism as Monday saw modest inflows of $27.29 million, based on data from SoSoValue. However, the situation deteriorated rapidly starting Tuesday, when investors withdrew $233.25 million from these funds.
The outflows intensified on Wednesday, which turned out to be the most challenging day of the week, with a sharp withdrawal of $635.23 million. Although Thursday offered a glimmer of hope with inflows of $131.31 million, this brief recovery was quickly negated on Friday, when a further $290.42 million left the funds. By the week’s end, the total net outflows had settled at exactly $1 billion.
This week’s performance starkly contrasts the previous six weeks, during which spot Bitcoin ETFs consistently drew net inflows. The week of April 17 was particularly notable, recording inflows of $996.38 million. Following last week’s setbacks, total net assets for spot Bitcoin ETFs now sit at $104.29 billion, with cumulative net inflows across all products amounting to $58.34 billion.
Amid the fluctuations in the cryptocurrency space, analysts at Bitunix pointed out a trend in capital rotating aggressively toward technologies associated with artificial intelligence and the institutionalization of crypto assets. Major technology firms like NVIDIA, Google, and Apple recently approached record highs, while AI chipmaker Cerebras saw a remarkable 70% intraday surge on its IPO debut.
On the regulatory front, significant developments unfolded with the CLARITY Act, perceived as one of the most pivotal bills for crypto market structure in the U.S., clearing the Senate Banking Committee. In response, shares of Coinbase surged, and Bitcoin made strides toward the $82,000 mark.
Despite these advancements, Bitunix noted that Bitcoin’s price structure indicates a market poised on edge. Heavy clusters of short liquidity were identified between $82,400 and $82,600, with $80,000 emerging as a crucial support level. The current price movements suggest that the market has entered a phase of high-leverage volatility, with investors keenly awaiting direction regarding major macro themes: AI growth, U.S.-China relations, and evolving regulations within the crypto space.
In parallel, spot Ether ETFs did not fare any better, witnessing outflows throughout the entire week. The hardest-hit day was Tuesday, with $130.62 million exiting the funds. This was followed by additional outflows on Friday, Wednesday, Monday, and a minor amount on Thursday. Over the five-day span, these withdrawals resulted in a total reduction of $254.46 million, bringing total net assets for spot Ether ETFs down to $12.93 billion by the end of the week.
