The exchange-traded fund (ETF) of Spot Bitcoins and Ethers continued to lose capital Tuesday. This was the fifth consecutive day that both assets lost money. Solana Funds, on the other hand, extended their streak of inflows to six consecutive days.
The following is a list of data Bitcoins are available from Farside Investors.BTCOn Tuesday, ETFs experienced net outflows of $578,000,000. It was the biggest single-day decrease since mid-October. BlackRock’s iShares Bitcoin Trust and Fidelity FBTC were the two ETFs that saw withdrawals.
Spot EtherETHETFs were also under similar pressure to sell, with net redemptions totaling $219 millions. Fidelity’s FETH, and BlackRock’s ETHA suffered the most. This extended a 5-day trend which has seen nearly $1 Billion in Ether linked ETFs disappearing since late October.
Spot Solana (SOLDespite the market’s gloomy mood, ETFs posted net inflows of $14.83 millions, marking their sixth day in a row with gains. Bitwise’s BSOL, and Grayscale’s GSOL, each contributed to positive flows, as traders continued rotating capital towards the newer yield-bearing products.
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As macro-jitters increase, institutions reduce risk
Vincent Liu told Cointelegraph, Chief Investment Officer at Kronos Research that this trend reflects a macroeconomic unease and not the waning of confidence in digital assets.
“Straight days of redemptions show institutions are trimming risk as leverage unwinds and macro jitters rise,” Liu said. “Until liquidity conditions stabilize, capital rotation will keep the ETF bleed alive.”
He said that outflows are a result of a wider risk-off climate, driven by the strengthening US dollar as well as tightening liquidity. They do not reflect a declining belief in cryptocurrency.
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Liu
Liu has also said that Solana is strong. “partly fresh flow meets fresh story, a new ETF with yield appeal pulling in curious capital.” Solana said that, while other people suffer in the chaos of macro-politics, his own life is not at risk. “speed, staking, and story keep momentum tilted upward.”
Liu warns that Solana’s ETF is niche at the moment. “It’s a narrative-driven move by early adopters chasing yield and growth. The broader market is still in risk-off mode,” He was warned.
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Source: cointelegraph.com
