Key Points
- Bitcoin ETFs in the US experienced outflows on Feb. 6, with Bitcoin trading below the crucial $100K level.
- Ether ETFs continued to see inflows, marking their seventh consecutive day of positive flow.
On February 6, the twelve spot Bitcoin exchange-traded funds (ETFs) in the United States saw a reversal in flow, leading to outflows. This occurred as Bitcoin maintained its trading position below the significant $100K threshold, which is crucial for its next upward movement.
Data from SoSoValue reveals that these ETFs recorded outflows amounting to $140.3 million, breaking a two-day streak of inflows that had amounted to $407 million.
Details of the Outflows
The largest outflow was from Fidelity’s FBTC, which saw redemptions worth $103.25 million. This was followed by Grayscale’s GBTC that registered withdrawals amounting to $42.21 million. On the other hand, Bitwise’s BITB was the only ETF to record inflows, attracting $5.15 million from investors.
Other spot Bitcoin funds, including BlackRock’s IBIT, recorded no net flows for the day. The total trading volume of the twelve Bitcoin ETFs increased to $2.45 billion on February 6, up from the $2.04 billion recorded the previous day.
Macroeconomic Factors Influence Outflows
The renewed outflows from Bitcoin ETFs came as Bitcoin and altcoins remained under pressure on February 5. This was in response to a stronger-than-expected private payrolls report from ADP, the largest payroll processor in the United States.
The report was released just prior to the official nonfarm payrolls report, where economists are predicting a slowdown in job growth to 154,000 jobs in January, down from 256,000 the previous month.
Investors in crypto and stocks closely watch U.S. employment data as it significantly influences the Federal Reserve’s interest rate decisions. A robust labor market could lead the Fed to maintain higher rates for a longer period as inflation remains above the 2% target. This could potentially postpone the two expected rate cuts this year.
At the time of reporting, Bitcoin (BTC) was trading at $97,341, marking a 0.5% decrease on the day.
Ethereum ETFs Continue Inflow Streak
While Bitcoin ETFs were facing outflows, Ether ETFs recorded their seventh consecutive day of inflows on February 6. They attracted $10.65 million—all of which went into BlackRock’s ETHA ETF, while other funds saw no net flows.
Spot Ether ETFs have experienced a surge in demand over the past week, attracting over $500 million in inflows from January 30 to February 5. This represents 16% of total inflows since their launch.
At the time of reporting, Ethereum (ETH) was trading at $2,711, registering a steeper loss of 4.1% over the past day compared to Bitcoin.