Bitcoin ETFs Break 7-Day Investment Streak In ‘Healthy’ Rebalancing
Spot Bitcoin ETFs ended a seven-day streak of inflows with $51.3 million in net outflows on Wednesday, a pullback that followed nearly $3 billion of inflows the previous week.
The reversal came after a week of steady allocations, including more than $1 billion into BlackRock’s iShares Bitcoin Trust, $850 million into Fidelity’s Wise Origin fund, and smaller gains across Ark 21Shares and Bitwise offerings, according to Bitcoin ETF flow data from Farside Investors.
Grayscale’s Bitcoin Trust, by contrast, recorded a $62.6 million outflow on Wednesday, while Fidelity’s Wise Origin fund shed $116 million the same day, erasing much of its earlier gains.
BlackRock’s iShares fund still managed to draw almost $150 million in fresh inflows on the same day, softening the overall decline and reinforcing its outsized role in sustaining demand among institutional investors.
“Healthy” rebalancing
“The pause in inflows looks like healthy short-term rebalancing rather than any real change in sentiment,” Farzam Ehsani, co-founder and CEO of crypto exchange VALR, told Decrypt.
After more than $2.3 billion pouring in over just a week, “it’s natural for markets to catch their breath,” Ehsani noted.
Even after the Fed cut its benchmark rate by 0.25 percentage points to a range of 4% to 4.25% on Wednesday, Bitcoin’s response was muted, with the cryptocurrency now trading at around $117,750, up 1.7% on the day according to CoinGecko data.
Bitcoin’s price action reflected how investors had already priced in the widely expected move, with attention shifting to the Fed’s more cautious economic forecasts, particularly for its employment outlook, Decrypt was told.
Ethereum, meanwhile, is currently trading around $4,600, up 2.8% on the day, after Hyperliquid and Avalanche led a brief post-Fed rate cut rally into Thursday.
“What’s more important is the broader trend that sees institutions steadily building allocations, and the demand for regulated exposure via ETFs that continues to grow,” Ehsani said.
Asked about how macro factors weigh on crypto, Ehsani said the Fed’s move, for one, “injects liquidity and pushes investors to look for assets with stronger return potential,” and that Bitcoin “naturally stands out in that environment.”
The current cycle is more bullish owing to crypto infrastructure showing it is “ready to absorb and channel that capital,” Ehsani said, referring to institutional demand.
“The inflows we’ve seen are likely just the beginning,” he added. “It’s the combination of accommodative macro conditions and crypto’s fresh maturity that makes this moment promising.”