Bitcoin, Ethereum ETFs Shed $582M in a Day as Institutions Trim Risk

Group 1 - Bitcoin and Ethereum spot ETFs experienced their largest daily net outflows in approximately two weeks, totaling $582.4 million on Monday as institutional investors reduced exposure amid market volatility and uncertainty in global monetary policy [1][2] - Spot Bitcoin ETFs saw net daily outflows peak at $357.6 million, marking the largest single-day redemption since early December, with significant selling across Fidelity's FBTC, Ark's ARKB, and Bitwise's BITB, while BlackRock's IBIT remained flat [2] - Ethereum spot ETFs recorded outflows of nearly $225 million on the same day, the largest single-day redemption since the beginning of the month [2] Group 2 - The outflows occurred despite crypto prices remaining stable, indicating that ETF flows are more reflective of institutional reallocations alongside other risk assets rather than direct crypto market movements [3] - The relationship between Bitcoin and the Nasdaq has intensified, with Bitcoin acting more like a derivative of tech stocks, leading to increased ETF redemptions during tech sector corrections [3][4] - Over the past six months, Bitcoin has declined while major U.S. indices have remained stable, with November being particularly poor for Bitcoin, and December showing a lack of sustained demand despite some growth attempts [5] Group 3 - U.S. spot Bitcoin ETF activity has been negative this month, with approximately $705 million in outflows compared to $480 million in inflows, resulting in a net drawdown of around $225 million [5] - Ethereum spot ETFs displayed a more balanced flow pattern, with about $411 million in inflows countered by $403 million in outflows, leaving the segment nearly flat overall [6] - The risk landscape has become more complicated following the U.S. Federal Reserve's recent decisions, with inflation not decreasing quickly enough and internal disagreements within the FOMC [6]