Bitcoin ETFs’ momentum could ‘not last too long’ — Ecoinometrics

Bitcoin ETFs' Momentum Could Not Last Too Long, Warns Ecoinometrics

Introduction

After 2 years and 9 months of Spot Bitcoin [BTC] ETFs being launched, the demand for the first-ever crypto ETF is perhaps gradually slowing down.

Market Performance

Over the last 30 days, net inflows into Bitcoin ETFs have remained positive at approximately 30,000–40,000 BTC. However, the pace of these purchases has weakened as Bitcoin recently consolidated above $80,000, suggesting that buying pressure may be losing momentum.

Ecoinometrics' Analysis

Despite the slowdown, BTC ETFs still continue to support Bitcoin’s price recovery, according to Ecoinometrics. This slowdown is relatively mild compared to previous periods when ETF demand reversed sharply.

Recent Flows

The timing here is interesting as just recently, Bitcoin ETF flows showed significant volatility between 1st October and 9th October. According to Farside investors, on 1st October, Bitcoin ETFs recorded net inflows of $102.7 million, led by BlackRock’s IBIT with $195.6 million. Inflows strengthened on 2nd October, reaching $189.9 million, supported by $158.2 million entering IBIT and $29.3 million into FBTC. However, sentiment weakened on 5th October, when ETFs recorded $89.8 million in net outflows. On 6th October, flows recovered to $118.8 million in net inflows. Meanwhile, selling pressure intensified on 7th October, with total net outflows reaching $484.9 million, including $207.7 million from IBIT and $105.1 million from FBTC. Then, on 8th October, another $244.1 million flowed out, led by $197.1 million in FBTC outflows. Lastly, by 9th October, flows turned slightly positive at $21.1 million, as IBIT attracted $22.4 million and VanEck’s HODL received $2.3 million, offsetting modest FBTC outflows. Overall, the period highlighted weakening and inconsistent Bitcoin ETF demand, with the brief 9th October recovery offering only limited evidence of renewed buying strength.

Other Altcoin ETFs

On the other hand, other crypto ETF flows have seen mixed fortunes in October so far, reflecting differing investor sentiment across digital assets. Ethereum [ETH] ETFs, for instance, recorded the largest withdrawals, with cumulative outflows reaching $634.80 million. This hinted at sustained selling pressure.

SEC Approval

As it stands, many other altcoins are filling their respective ETFs proposals with the U.S. Securities and Exchange Commission (SEC). The SEC recently approved Cboe BZX’s proposed rule change, clearing a listing hurdle for 3x daily leveraged ETFs tied to Bitcoin (BITH), Ethereum (ETHK), gold (GDLU), silver (SLVK), crude oil (OILY), and natural gas (NATX).