Spot bitcoin ETFs attracted inflows on Monday, breaking a streak of daily outflows, though the broader trend remains bearish. Over the shortened holiday week, these funds lost a net $526.6 million, marking an eighth straight week of negative flows. The ether ETFs also drew inflows on Monday, per CoinDesk data, but the magnitude was not specified.
This persistent outflow pressure highlights a sustained risk-off sentiment among institutional investors in the crypto space. The eight-week losing streak for bitcoin ETFs is the longest since their launch, suggesting waning appetite for direct crypto exposure despite occasional daily reversals.
Regulatory uncertainty continues to weigh on the market. The SEC's ongoing classification of certain tokens as securities and its delayed decisions on spot ether ETF applications have kept many traditional investors on the sidelines. The absence of clear federal guidelines for crypto ETFs in the U.S. contrasts with more permissive regimes in jurisdictions like Hong Kong and the EU.
Bitcoin's market cap has slipped relative to the broader crypto sector, with dominance falling below 50% as altcoins like Solana and meme coins capture retail attention. Meanwhile, ether's market cap has remained relatively stable, supported by its staking yield and growing layer-2 ecosystem. Both assets remain highly correlated with broader risk asset moves, particularly tech stocks.
Community reaction on social platforms has been mixed, with some analysts viewing the Monday inflows as a potential bottom signal, while others caution that the outflows could persist until macroeconomic conditions improve. Comparing bitcoin's ETF flows to gold ETFs during similar macro environments may offer limited insight, given crypto's higher volatility and regulatory tail risks.