Blockchain community analysts are warning of a concerning trend related to ETF funds tracking major cryptocurrencies. Data revealed by an analytics platform indicates that since November, there has been a systematic decrease in inflows into investment products based on BTC and ETH.
Specifically, the 30-day moving average (30D-SMA) measuring the net deposit balance in bitcoin and ethereum ETFs has entered negative territory and remains there consistently. This prolonged phase of negative cash flow suggests a clear shift in sentiment among large market players.
What is driving this outflow?
Experts interpret this situation as evidence that institutional market participants are gradually reducing their involvement in the crypto sector. The capital reduction phase we are observing is not an isolated phenomenon – it corresponds with a broader process of shrinking global liquidity within the digital asset ecosystem.
Persistent negative capital flow balances for bitcoin and ethereum ETFs should be viewed as a cautionary signal. It may indicate that some significant investors are currently refraining from additional allocations in this asset category, waiting for changing market conditions or seeking better investment opportunities in other segments.
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Massive capital outflow from Bitcoin and Ethereum ETFs signals a change in institutional strategy
Blockchain community analysts are warning of a concerning trend related to ETF funds tracking major cryptocurrencies. Data revealed by an analytics platform indicates that since November, there has been a systematic decrease in inflows into investment products based on BTC and ETH.
Specifically, the 30-day moving average (30D-SMA) measuring the net deposit balance in bitcoin and ethereum ETFs has entered negative territory and remains there consistently. This prolonged phase of negative cash flow suggests a clear shift in sentiment among large market players.
What is driving this outflow?
Experts interpret this situation as evidence that institutional market participants are gradually reducing their involvement in the crypto sector. The capital reduction phase we are observing is not an isolated phenomenon – it corresponds with a broader process of shrinking global liquidity within the digital asset ecosystem.
Persistent negative capital flow balances for bitcoin and ethereum ETFs should be viewed as a cautionary signal. It may indicate that some significant investors are currently refraining from additional allocations in this asset category, waiting for changing market conditions or seeking better investment opportunities in other segments.