Crypto ETFs Bleed $31M as Bitcoin and Ethereum Funds Get Spooked

Investors yanked $31 million from Bitcoin and Ethereum ETFs this week—because apparently ’digital gold’ isn’t quite as shiny when Wall Street starts sweating over interest rates.

The outflows hit just as traditional finance analysts were polishing their ’I told you so’ speeches about crypto volatility. Meanwhile, decentralized true believers are shrugging—after all, who needs ETFs when you can custody your own keys? (Spoiler: Your average financial advisor still can’t pronounce ’seed phrase.’)

This minor pullback comes despite Bitcoin hovering near all-time highs earlier this quarter. Pro tip for institutions: Maybe try hodling for longer than a Starbucks earnings cycle.

The crypto ETF sector is going through a notable sentiment shift among institutional investors. As per the latest data from Lookonchain, both the Bitcoin ($BTC) and Ethereum ($ETH) ETFs have seen $12.83M and $18.81M in outflows on May 7. The on-chain analytics provider shared insights into the current crypto ETF outflows in a recent social media post.

May 7 Update:

10 #Bitcoin ETFs
NetFlow: -132 $BTC(-$12.83M)#Grayscale(GBTC) outflows 181 $BTC($17.6M) and currently holds 190,229 $BTC($18.46B).

9 #Ethereum ETFs
NetFlow: -10,287 $ETH(-$18.81M)#Fidelity outflows 9,991 $ETH($18.26M) and currently holds 413,405… pic.twitter.com/1cLhRh3LEt

Bitcoin ETFs Witness $12.83M in Outflows

In the case of Bitcoin ($BTC) exchange-traded funds, a cumulative $12.83M left the market. The respective. In this respect, up to 4 out of 10 Bitcoin ETFs incurred losses. The top Bitcoin ETF in terms of losses was Grayscale Bitcoin Trust ($GBTC), accounting for 181 $BTC in outflows. Simultaneously, ARK 21Shares Bitcoin ETF ($ARKB) also saw 169 $BTC in losses. Apart from that, Valkyrie Bitcoin Fund ($BRRR) and Invesco Galaxy Bitcoin ETF ($BTCO) also recorded 48 $BTC and 33 $BTC in outflows, respectively.

Despite these outflows across diverse Bitcoin ETFs, a couple of the exchange-traded funds remained successful in attaining notable inflows. Specifically, iShares Bitcoin Trust ($IBIT) of BlackRock included up to 280 $BTC. Along with that, Franklin Bitcoin ETF ($EZBC) added nearly 19 $BTC. On the other hand, the other 4 Bitcoin ETFs saw no flows at all.

Ethereum ETFs Record $18.81M in Outflows

Presenting a similar scenario, Ethereum ($ETH) ETFs also witnessed noteworthy outflows. Cumulatively, the Ethereum exchange-traded funds have lost approximately $18.81M. Particularly, Fidelity Ethereum Fund accounted for the peak level in terms of daily outflows, with 9,991 $ETH leaving it. Additionally, Invesco Galaxy Ethereum ETF ($QETH) incurred 109 $ETH in losses.

Concurrently, the outflows of BlackRock’s iShares Ethereum Trust ($ETHA) have reached 107 $ETH. Additionally, Grayscale Ethereum Trust ($ETHE) and Grayscale Ethereum Mini Trust ($ETH) have also witnessed 78 $ETH and 2 $ETH in total outflows.

Institutional Capital Shifts from Ethereum to Bitcoin

According to Lookonchain’s statistics, the institutional investors are apparently shifting from Ethereum to Bitcoin, as $IBIT and $EZBC have noted considerable inflows. Following the overall outflows of $12.83M and $18.81M from Bitcoin and Ethereum ETFs, their remaining holdings stand at $113.41B and $6.32B in total. However, whether Ethereum will bounce back remains to be seen in the NEAR future.