Bitcoin ETFs Attract Fresh Inflows After Heavy Sell-Off

Following a tumultuous week marked by significant volatility and downturns, spot crypto exchange-traded funds (ETFs) for Bitcoin, Ether, and Solana experienced a notable rebound at the week's end, regaining investor appeal and witnessing incoming cash flows. On Friday, spot Bitcoin (BTC) ETFs attracted net inflows of $238.4 million, rebounding from a wave of heavy redemptions the day prior. BlackRock’s IBIT played a pivotal role in this turnaround, contributing $108 million, while smaller contributions from BITB, ARKB, and BTCO helped buoy positive sentiment in the market. Even Grayscale’s GBTC, long pressured by outflows, added $61.5 million, according to data from Farside Investors. This rebound follows a painful $903 million outflow on Thursday, the largest single-day outflow in November and one of the biggest since the products launched in January 2024. During that day, redemptions hit nearly every issuer, including IBIT with a loss of $355.5 million, FBTC with $190.4 million pulled, and GBTC with outflows of $199.4 million.

Ether ETFs End 8-Day Outflow Streak

After eight consecutive sessions of redemptions, Ether (ETH) ETFs broke their losing streak with $55.7 million in inflows on Friday, largely driven by Fidelity’s FETH, which brought in $95.4 million. This reversal came after a harsh period from November 11–20, when Ethereum funds collectively shed $1.28 billion, one of the longest and deepest stretches of red since their launch.

Solana ETFs Outperform Broader Altcoin Market

Meanwhile, Solana (SOL) ETFs continue to outperform the broader altcoin market. Since launch, the five Solana funds have gathered $510 million in net inflows, overwhelmingly led by Bitwise’s BSOL with $444 million. The group has now recorded a 10-day inflow streak.

Ether Traders Tentatively Add Long Positions

Ether experienced a sharp decline this week, falling 15 percent between Wednesday and Friday, liquidating $460 million in leveraged long positions. However, despite the decline and a total drawdown of 47 percent since the August all-time high, derivatives data indicates that top traders are slowly adding long exposure. Futures funding rates have risen from four percent to six percent, suggesting early signs of stabilization even as bullish demand remains weak.

Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

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