Bitcoin ETFs Require Nearly $1 Billion in Inflows to Prevent Significant Monthly Outflows

Key Highlights:

U.S.-list spot bitcoin ETFs are on course to experience the second-largest monthly outflow ever.
Analysts point out that the price difficulties for BTC this month are linked to these ETF outflows, suggesting that any recovery could greatly depend on significant capital inflows.
Conversely, Ether ETFs have observed a robust demand, accumulating $3.23 billion in inflows this month, continuing their successful trend since April.

Article Content:

Bitcoin bulls are facing a challenging week, needing to inject almost $1 billion into U.S.-listed ETFs to avoid a historically poor performance this month. Since January 2024, the launch of 11 spot bitcoin ETFs has allowed investors easier access to cryptocurrency without the burden of coin custody. Unfortunately, this month reveals a starkly different picture, with these funds reporting net outflows nearing $972 million, the second-highest since their inception, following February’s $3.56 billion high caused by market pressures.

Analysts believe this downturn is a primary factor contributing to BTC’s price struggles. The cryptocurrency peaked at over $124,000 earlier this month but has since dipped below $100,000.

“This month could indeed herald the second-highest outflow on record, especially when compared to the notable declines witnessed during the tariff disputes in February,” noted Matrixport in their report. They advise caution despite potential macroeconomic drivers that could elevate BTC’s status.

Forecasts suggest BTC could reclaim higher values towards the year’s end, but substantial inflows of around $173 billion will be essential to achieve this.

ETHER ETFs, on the other hand, are thriving, illustrating contrasting fortunes in the evolving crypto landscape.