US Investors Might Be Leaving Bitcoin and Ethereum ETFs for International Markets
US Bitcoin and Ethereum ETFs are experiencing significant outflows as investors rotate capital into international equity funds.Summary
US spot Bitcoin and Ethereum ETFs are seeing sustained net outflows, with total assets dropping sharply from recent highs; Bitcoin ETFs fell from nearly $115 billion to about $83 billion, and Ethereum ETFs contracted from $18 billion to near $11 billion. This capital rotation coincides with record inflows into global ex-US stock funds, suggesting institutional investors are trimming exposure to crowded US growth trades, including crypto, to reallocate to cheaper overseas markets amid improving foreign macro conditions. The shift is also influenced by rising US Treasury yields, driven by strong jobs data, which increases the attractiveness of safer, yield-generating assets over risk assets like Bitcoin and Ethereum. Consequently, the mechanism that previously amplified crypto rallies through ETF inflows is now reversing, acting as a distribution channel that weakens the short-term liquidity backdrop for the crypto market.
(Source：BeInCrypto)