Timber wood Update Nov. 7, 1:53 pm UTC: This article has been updated to add a Twitter post from Bloomberg analyst Eric Balchunas.
United States spot Bitcoin exchange-traded funds (ETFs) recorded a $239.9 million net inflow on Thursday, ending a six-day slump of outflows draining almost $1.4 billion from the market.
According to data from Farside Investors, the reversal came after a turbulent week of profit-taking driven by macroeconomic uncertainty, which led to redemptions across the largest institutional Bitcoin (BTC) investment vehicles.
The rebound was led by asset manager BlackRock, which added $112.4 million to its iShares Bitcoin Trust (IBIT), followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $61.6 million. The ARK 21Shares Bitcoin ETF (ARKB) reported $60.4 million, while Grayscale’s GBTC, which had experienced consistent outflows since mid-October, showed no change.
In total, the six-day sell-off marked one of the steepest pullbacks since the ETFs started trading in January.
Spot Bitcoin ETF flows from Oct. 29 to Thursday. Source: Farside InvestorsBloomberg ETF analyst Eric Balchunas said in a Friday X post that despite a 20% market drawdown, US Bitcoin ETFs saw less than $1 billion in total outflows, which means 99.5% of assets remain invested.
Balchunas said that even after the correction, ETF investors “hung tough,” highlighting the staying power of long-term holders. He added that the strong retention rate suggests the selling pressure didn’t come from outside investors, but rather “from inside the house.”
How Ether and Solana ETFs performedSimilar to spot Bitcoin ETFs, the exchange-traded products tracking Ether (ETH) also saw a six-day outflow streak on a smaller scale.
According to SoSoValue, spot ETH ETFs had a six-day sell-off, resulting in about $837 million being withdrawn from the ETH-based crypto investment products. This was finally reversed on Thursday, when spot Ether ETFs saw small gains of $12.51 million.
Spot Ether ETFs data from Oct. 29 to Thursday. Source: SoSoValueSpot Solana (SOL) ETFs have performed well since their launch on Oct. 28. SoSoValue data shows that SOL-based products have seen $322 million in inflows since their launch and haven’t had a day of net outflows.
Related: Bitcoin bulls retreat as spot BTC ETF outflows deepen and macro fears grow
ETFs are key driver for liquidity in cryptoOn Thursday, crypto market maker Wintermute assigned ETFs as one of the three key pillars of liquidity for the crypto sector.
In a blog post, Wintermute said that liquidity remains the key driving force behind every crypto cycle, arguing that it has a greater impact than technological developments.
Wintermute said that stablecoins, ETFs and digital asset treasuries were the three major pillars for crypto liquidity, and pointed out that liquidity inflows in all three sectors have reached a plateau.
A recent survey from brokerage giant Schwab Asset Management revealed that 52% of respondents plan to invest in ETFs, while 45% expressed interest in crypto-linked ETFs.
Magazine: Solana vs Ethereum ETFs, Facebook’s influence on Bitwise: Hunter Horsley