Crypto ETFs Record Strong BTC Demand With $241M Inflows, ETH Outflows Deepen
Investors are having to make tough choices amid the turbulence in the market—whether to pull out completely or to inject more capital—as the overall crypto market value continues to decline.
For context, the total market capitalization has recorded a sharp fall, dropping from $4.08 trillion on September 18 to $3.76 trillion at press time, with $320 billion wiped off within days.
Typically, this suggests that the bears remain in control and are likely to shake the market further as they divest and exit. Interestingly, institutional investors have taken a diverse approach—purchaseing BTC while tradeing ETH.
Institutional Investors Resume BTC purchaseing
Institutional investors in the market have resumed their BTC purchases, a sharp turnaround from the bearish stance they displayed earlier in the week.
, U.S. institutional investors scooped $241 million worth of BTC despite the asset facing an intensive drawdown and briefly hitting the $111,000 region in the ahead hours of the day.
The latest activity shows a rapid shift from the bearish opening of the week. Between Monday and Tuesday, this identical group sold $466.78 million worth of assets from the market, a clear indication of their bearish position at the time.
It remains unclear whether this shift signals that the group has completely turned bullish, viewing the price drop as an opportunity to accumulate BTC, or whether renewed tradeing pressure will follow.
Bears Still Keep Their Hold on ETH
The bears are not letting go of Ether (ETH), as they have continued to offload the asset over the past three days, weighing heavily on its price performance.
The , with a total of $299.86 million removed from the market, showing persistent bearish sentiment among institutional investors.
The last time this group sold ETH consistently for three days was between August 28 and September 8, when total outflows reached $1.049 billion.
ETH’s performance has been underwhelming. later than setting an all-time high of $4,953, the asset has taken a steep plunge, and at publication time it is struggling to hold the $4,000 region.
Retail investors could play a key role as institutions pull back from ETH. CoinGlass spot platform data reveals that over the identical three-day period, retail participants scooped up more of the asset, adding $420.5 million worth of ETH into the market.
ETF Scene Continues to Build
The platform-traded funds (ETF) scene has also been building momentum in recent days. , with BTC taking the lion’s share at $292 million. However, sentiment has shifted since then.
Institutional bearishness may only be temporary, especially as more crypto assets line up for ETF approval. The latest entrant, , with 21Shares and Rex-Osprey preparing to launch their products.
According to a report from could play a significant role in positioning the asset to set a new all-time high, similar to its run in 2024.
