Institutional investors "face difficulties" as capital turns away from BTC and ETH ETFs

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The cryptocurrency fund and institutional business are experiencing a concerning “cooling down” trend. According to analysis data from Glassnode, the net flow index over the past 30 days has recorded continuous negative values since the beginning of November, reflecting a significant decline in institutional investor interest in cryptocurrencies.

Specifically, Farside Investors announced notable figures: on December 23rd, the amount of money withdrawn from Bitcoin ETFs reached $188.6 million, a substantial figure indicating market distrust. This also aligns with the recent weakening trend of BTC dominance — an important indicator reflecting Bitcoin’s influence on the overall market, thereby affecting the entire market cap of the crypto industry.

Meanwhile, BlackRock’s IBIT, despite seeing a capital inflow at the end of December, could not reverse the overall negative trend. Additionally, Ethereum ETFs faced similar pressure, losing $95.5 million on the same day, continuing a series of continuous withdrawals over four days.

In summary, the combination of massive withdrawals from key ETF products and signs of weakening in BTC dominance are signaling market volatility. Institutional investors are currently in a “wait-and-see” mode, reconsidering their positions in the cryptocurrency market.

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