US Bitcoin and Ether ETFs Break Record Outflow Streak

US spot bitcoin and ether exchange-traded funds ended a record 13-day streak of outflows, posting a net inflow of $3.05 million on Thursday. The modest reversal follows a period of heavy redemptions that saw over $4.4 billion exit the funds since mid-May, dragging total bitcoin ETF assets down to $80.40 billion from $104.29 billion at the start of the streak. The outflow streak was the longest since the ETFs launched in January, reflecting a broad risk-off shift as traders rotated out of crypto amid macroeconomic uncertainty. The inflows, though small, broke the negative momentum and hinted at possible stabilization, especially as bitcoin's price had fallen from around $70,000 to below $62,000 during the sell-off, testing key support levels near the 200-day moving average.

The inflow, though modest relative to the preceding outflows, marks a potential turning point in sentiment for digital asset ETFs. The prolonged outflow streak had coincided with a sharp decline in bitcoin's price, which fell from around $70,000 to below $62,000. This price drop pushed many miners closer to break-even levels, as the post-halving reduction in block rewards made operations less profitable, potentially forcing some to sell holdings and adding to selling pressure. Meanwhile, exchange reserve drawdowns suggested that long-term holders were accumulating, a bullish signal that often precedes price recoveries. The ETF flow reversal could signal that institutional investors are beginning to re-enter, especially as bitcoin dominance remains elevated near 55%, indicating capital is rotating from altcoins into bitcoin as a safe haven within crypto. Traders can monitor real-time ETF flow data and bitcoin price action on NowPrice's live crypto dashboard to gauge whether this inflow signals a broader reversal or a temporary pause.

Looking ahead, market participants will watch for sustained inflows in the coming days to confirm a shift in investor appetite. Key levels to monitor include bitcoin's ability to reclaim the $65,000 mark and ether's performance relative to bitcoin, as ETF flows often correlate with broader risk sentiment in the crypto market. The upcoming Federal Reserve meeting and macroeconomic data releases could also influence capital flows into digital asset products, particularly as the US Dollar Index (DXY) and Treasury yields remain elevated, historically creating headwinds for risk assets like crypto. On-chain data shows whale concentration increasing, suggesting large holders are positioning for a potential rally, but sustained ETF inflows will be crucial to absorb any miner selling pressure. A break above $65,000 could trigger a short squeeze, while failure to hold $60,000 might lead to further outflows. The next few days will be critical in determining whether this inflow is the start of a new uptrend or just a temporary pause in the broader downtrend.