Cryptocurrency Outflows Worsen as Bitcoin Funds Rebound

Ethereum ETF Outflows Extend to 12 Days as Bitcoin Funds Recover

The prolonged decline in Ethereum-based exchange-traded funds (ETFs) has continued, with outflows reaching a 12-day streak. Meanwhile, Bitcoin-focused funds have seen a significant rebound.

According to data from CryptoCompare, Ethereum-based ETFs have seen outflows totaling over $100 million since January 21st. This marks the longest stretch of outflows for Ethereum ETFs since the inception of the products.

In contrast, Bitcoin-focused ETFs have seen a remarkable recovery, with inflows totaling over $200 million since January 20th. This surge in demand has helped to drive up the price of Bitcoin, which has risen by over 10% in the past week.

The divergence in performance between Ethereum and Bitcoin ETFs may be attributed to the ongoing debate surrounding the scalability and usability of the Ethereum network. As the network continues to grapple with high gas fees and congestion issues, investors may be reevaluating their exposure to Ethereum-based assets.

The recovery in Bitcoin funds, on the other hand, may be driven by the cryptocurrency's traditional role as a safe-haven asset. As global markets experience volatility, investors may be seeking refuge in Bitcoin's perceived stability.

It remains to be seen whether the trend will continue, but for now, Ethereum ETFs are struggling to regain momentum, while Bitcoin funds are enjoying a resurgence.