Institutional Market Dynamics Suffer from Negative Flows in Bitcoin and Ethereum

The ETF markets for Bitcoin and Ethereum face a challenging sequence, revealing a clear reversal in institutional enthusiasm. According to recent analyses, the scenario shows a consistent negative traction, with technical data indicating ongoing reductions in the commitment of large investors.

Continuous Pressure on ETF Flows

During the session on December 23, Bitcoin ETFs recorded significant outflows of $188.6 million, highlighting the cooling of institutional interest. In the same period, Ethereum products also experienced outflows, totaling $95.5 million. This pattern is not an isolated event but part of a four-day streak of redemptions.

BlackRock’s IBIT performance deserves special attention. Although it showed small positive flows at the end of December, the overall picture remains under negative dynamics, with Bitcoin’s dominance experiencing marginal pressure.

Structural Indicators Reveal Weakness

Data provided by Glassnode tell a concerning story: the 30-day moving average for net flows has been in negative territory since mid-November. This metric acts as a sensitive thermometer for institutional interest, suggesting that the retracement is not merely superficial.

With Bitcoin trading at $87,350 (down 0.99% in 24 hours) and Ethereum at $2,930 (down 1.06% in the same period), technical pressure aligns with flow indicators, reinforcing the weakness observed in spot markets.

What the Data Indicates

The convergence between ETF outflows, structurally negative flow metrics, and price weakness points to a realignment in institutional positions. While some participants remain in defensive positions, the total volume of redemptions suggests prevailing caution among larger-scale investors.