Institutional Repositioning Drives Significant Outflows in Crypto ETFs

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US spot Bitcoin and Ethereum ETFs experienced substantial net outflows on Tuesday, totaling approximately $945 million combined. This activity, among the largest single-day redemptions since their launch, is attributed to institutional investors repositioning portfolios ahead of key macroeconomic events.

Data reveals spot Bitcoin ETFs saw $523 million in net outflows, led by Fidelity’s FBTC. Conversely, BlackRock’s IBIT recorded zero flows. The nascent spot Ethereum ETF market was hit even harder, with $422.3 million in outflows representing its second-worst day on record.

Analysts suggest this reflects a strategic shift, with institutions potentially locking in profits from recent highs and reallocating to cash or Treasuries amid renewed inflation concerns and Federal Reserve policy uncertainty.