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bitcoin

Bitcoin ETFs See $226 Million Outflows While Ethereum Gains $130 Million – Signs Of Coming Altseason?

Ash Tiwari
by Ash Tiwari
8 months ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

On December 23, US spot Bitcoin (BTC) exchange-traded funds (ETFs) experienced significant outflows totalling $226 million, while Ethereum ETFs saw inflows of $130 million. The stark contrast in net flows between these two ETFs has sparked discussions among crypto analysts about whether an altcoin season might be on the horizon.

Capital Flow Pivots From Bitcoin ETFs To Ethereum ETFs

Bitcoin ETFs have been grappling with substantial outflows since December 19, with total outflows surpassing $1.1 billion at the time of writing. Notably, this trend comes after 15 consecutive days of inflows, during which Bitcoin ETFs’ total net assets surged from $100 billion to $121 billion.

Related Reading: SEC Greenlights First Hybrid Bitcoin And Ethereum ETFs From Franklin Templeton, Hashdex

On December 19 alone, Bitcoin ETFs recorded $680 million in outflows – the largest single-day outflows since Bitcoin ETFs were introduced earlier this year – causing their total net assets to fall to $105 billion. A key contributor to this decline was Grayscale’s GBTC fund, which sold 1,870 BTC over a three-day period.

While some market analysts attribute the recent outflows to profit-taking, others believe this trend could reflect a shift in investor sentiment toward the flagship cryptocurrency. Specifically, it appears there may be a significant capital reallocation from Bitcoin ETFs to Ethereum ETFs.

Supporting this view, Ethereum ETFs have been attracting growing interest, as evident from recent inflow data. According to figures from SoSoValue, Ethereum ETFs received $130 million in inflows on December 23, the same day Bitcoin ETFs reported $226 million in outflows.

The rising capital inflows to Ethereum ETFs are not unexpected, as institutional interest in the second-largest cryptocurrency by market cap continues to grow. A recent report noted that BlackRock’s iShares Ethereum Trust ETF has amassed more than a million ETH.

Bullish Sentiment For Ethereum Grows

Despite Ethereum underperforming relative to other cryptocurrencies like Solana (SOL), SUI, and XRP for much of the year, analysts believe the tides may be turning in ETH’s favor. One of the key reasons for this optimism is the declining Bitcoin dominance, which many see as a precursor to the long-awaited “altcoin season.”

Related Reading: Here’s How Ethereum Price Could Surpass $5,000 Soon, CryptoQuant Explains

Moreover, bullish technical indicators are fuelling positive sentiment for Ethereum’s price. For instance, the ETH/BTC trading pair posted a higher low on December 22 on the daily chart, signalling a potential trend reversal and potential gains for ETH.

ETHBTC
Source: ETHBTC on TradingView.com

In addition, weekly net inflows into Ethereum staking contracts have been on the rise, suggesting more ETH is being locked up in staking. This reduction in the circulating supply could create upward pressure on Ethereum’s price. 

That said, seasoned crypto analyst Ali Martinez expects Ethereum’s next move up to be slightly delayed. At press time, ETH trades at $3,363, down 2.7% in the past 24 hours.

ethereum
ETH trades at $3,363 on the daily chart | Source: ETHUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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