Data shows Bitcoin spot exchange-traded funds (ETFs) have seen netflows flip red, implying a slowdown in demand among institutions.

Bitcoin Spot ETFs Have Switched To Net Outflows Recently

In a new post on X, on-chain analytics firm Glassnode has discussed about the latest trend in the netflow of the US Bitcoin spot ETFs. The spot ETFs refer to investment vehicles that allow investors to gain exposure to an underlying asset without having to own it.

In the context of cryptocurrencies, the spot ETFs allow for an off-chain route into them, which can be preferrable for traditional traders who aren’t familiar with digital asset exchanges and wallets.

These investment vehicles gained approval for Bitcoin from the US Securities and Exchange Commission (SEC) in January 2024. Six months later, Ethereum also got its greenlight.

Now, here is the chart shared by Glassnode that shows how the netflow related to BTC’s spot ETFs has changed during the last few months:

Looks like the value of the metric has turned negative in recent days | Source: Glassnode on X

As displayed in the above graph, the US Bitcoin spot ETF netflow spiked to significant positive levels earlier in September, indicating that a large amount BTC was flowing into the wallets associated with these funds.

It’s also visible from the chart, however, that demand has witnessed a slowdown recently, with the netflow even turning slightly negative during the last couple of days.

The spot ETFs are the preferred mode of investment for institutional entities, so the netflow associated with them can act as a proxy for the demand among them. Considering the sw

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Author: Keshav Verma