Crypto Market Turbulence: Bitcoin and Ethereum ETFs Face Major Outflows, Solana Defies Trend

The digital asset market witnessed significant shifts last week, with US spot Bitcoin Exchange-Traded Funds (ETFs) recording their most substantial weekly outflows since February 2024. According to data from SoSoValue, these ETFs saw a staggering $1.33 billion in net withdrawals over just four trading days.

Unpacking Bitcoin ETF Outflows

The capital flight was particularly pronounced mid-week. Wednesday emerged as the heaviest day for withdrawals, with a massive $709 million exiting Bitcoin ETFs. This was preceded by Tuesday’s substantial net outflow of $483 million. While selling pressure eased towards the end of the week, with Thursday and Friday recording more modest outflows of $32 million and $104 million respectively, the overall bearish sentiment for the week was firmly established.

This recent wave of divestment marks the most severe period of capital flight since late February 2024. During that earlier period, Bitcoin ETFs shed $2.61 billion in a single week, coinciding with a sharp decline in Bitcoin’s price from a peak of $109,000 to below $80,000.

Long-Term Perspective on Bitcoin ETFs

Despite the recent turbulence, the broader picture for US spot Bitcoin ETFs remains robust. Since their inception in January 2024, cumulative net inflows still stand at an impressive $56.5 billion. The total net asset value across all Bitcoin ETFs currently hovers around $115.9 billion. These figures suggest that while short-term sentiment may be volatile, long-term institutional and retail interest in these investment vehicles has not fundamentally wavered.

Ethereum ETFs Also Under Pressure

The challenging market conditions were not limited to Bitcoin. Spot Ethereum ETFs also experienced significant withdrawals last week, accumulating a total net outflow of $611 million. Similar to Bitcoin ETFs, Wednesday was the worst day for Ethereum, witnessing a single-day net outflow of $298 million.

Currently, the total net asset value of Ethereum spot ETFs is approximately $17.7 billion, with cumulative net inflows reaching $12.3 billion since their listing in July 2024.

Solana (SOL) Defies the Downturn

Amidst the widespread outflows, Solana (SOL) spot ETFs emerged as a beacon of resilience. Defying the prevailing market sentiment, Solana ETFs attracted $9.6 million in net inflows last week, extending a multi-week streak of positive inflows. Notably, Bitwise’s BSOL product continues to dominate this category, solidifying its position as the top performer in attracting capital.