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Mass ETF Outflows Worsen Institutional Disinterest in Bitcoin and Ethereum
Negative flows in cryptocurrency investment products are intensifying as Bitcoin dominance faces pressure. According to analysis from Farside Investors, Bitcoin ETFs recorded a outflow of $188.6 million on December 23, marking a continuation of outflows that contrast with the expected scenario for institutional products. During the same period, Ethereum ETFs suffered an even larger loss of $95.5 million, continuing a four-day streak of redemptions.
The Deterioration of Institutional Flows
Glassnode presents revealing data on institutional sentiment: the 30-day moving average for net flows remains in negative territory since mid-November. This pattern suggests a significant cooling in demand for institutional exposure to Bitcoin and Ethereum. The price of BTC, quoted at $87.35K with a 0.99% retracement in 24 hours, reflects this institutional capital caution, while Ethereum trades at $2.93K with a 1.06% decline in the same period.
Highlighted ETFs and Market Dynamics
BlackRock’s IBIT, one of the leading products in the market, experienced brief inflows at the end of December, but such movements are exceptions rather than the rule in the current context. The broader trend remains firmly in the territory of continuous outflows. The erosion of Bitcoin dominance, although modest, accompanies these institutional redemptions, suggesting a portfolio redistribution among different digital assets and perhaps a reallocation to traditional markets.