Bitcoin and Ethereum ETFs surged on Fed rate-cut optimism, drawing $1.9 billion last week, but a sharp Monday pullback triggered $1.7 billion in crypto liquidations—primarily affecting Dogecoin, Solana and Ethereum—highlighting rapid inflow-outflow volatility in digital-asset ETFs.
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$1.9B inflows last week, led by Bitcoin ETFs
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Monday’s sharp reversal caused $1.7B in liquidations across DOGE, SOL and ETH
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Year-to-date AUM rose to $40.4B; Bitcoin ETFs accounted for $977M of net deposits
Bitcoin and Ethereum ETFs surge on Fed optimism; $1.9B inflows last week—learn why and what $1.7B Monday liquidations mean. Read more from COINOTAG.
What drove the recent surge in Bitcoin and Ethereum ETFs?
Bitcoin and Ethereum ETFs rallied as investors priced in the Federal Reserve’s first rate cut of the year and the possibility of further easing. ETF inflows totaled $1.9 billion last week, with Bitcoin funds capturing the largest share and renewed institutional interest supporting crypto allocations.
How much did Bitcoin ETFs attract and which funds led inflows?
Bitcoin ETFs drew roughly $977 million in net deposits last week. iShares Bitcoin Trust (IBIT) and BlackRock’s flagship Bitcoin fund were among the largest beneficiaries; BlackRock’s fund added $866 million, per plain-text reporting attributed to Farside Investors. Institutional appetite helped push year-to-date assets under management to $40.4 billion.
Why did inflows accelerate later in the week?
Observers noted that initial caution gave way as traders digested the implications of the Fed move. James Butterfill, head of research at CoinShares (plain text mention), highlighted late-week inflows of $746 million on Thursday and Friday—indicating momentum built as market participants adjusted positioning.
How severe were the Monday liquidations and which assets were hit?
Liquidations reached approximately $1.7 billion on Monday morning. The largest pain points were Dogecoin, Solana and Ethereum. The rapid price moves erased short-term gains and exposed leverage in derivatives and margin positions across exchanges and OTC venues.
What were price impacts for Ethereum during the pullback?
Ethereum fell to about $4,206.41 at the time of reporting, a drop near 6% in 24 hours. That decline tightened funding rates and triggered automated liquidations, illustrating how ETF-driven inflows can coexist with leveraged, short-term volatility.
When did altcoins and other ETPs see demand?
Exchange-traded products linked to XRP and Solana attracted notable interest, with reported inflows of $69.4 million and $127.3 million respectively. Solana’s institutional momentum included a $1 billion corporate treasury held by Forward Industries (plain text) and a subsequent public offering plan announced by the same issuer.
What new products influenced market breadth?
Grayscale’s Digital Large Cap Fund began trading toward the end of last week, providing diversified exposure to Bitcoin, Ethereum, XRP, Solana and Cardano in a market-cap-weighted structure. That launch broadened institutional access beyond single-asset Bitcoin ETFs.
Frequently Asked Questions
How did Bitcoin ETFs perform compared to Ethereum ETFs last week?
Bitcoin ETFs captured the majority of net deposits, contributing roughly $977 million of the $1.9 billion inflows. Ethereum-related ETFs also benefited from broader market optimism but saw smaller absolute inflows than Bitcoin funds.
Will ETF inflows reduce crypto volatility?
ETF inflows can increase institutional depth and liquidity, but they do not eliminate volatility. Concentrated inflows plus leveraged retail positions can still produce sharp swings and liquidations, as seen on Monday.
Key Takeaways
- Significant inflows: $1.9B entered crypto ETFs last week, led by Bitcoin funds.
- Volatility risk: $1.7B in Monday liquidations show how quickly leveraged positions unwind.
- Institutional breadth: New funds and ETPs broaden exposure beyond Bitcoin to ETH, XRP, SOL and ADA.
Conclusion
The week highlighted the dual nature of ETF-driven markets: Bitcoin and Ethereum ETFs can attract rapid inflows and institutional demand, yet markets remain sensitive to leverage and short-term sentiment. Monitor ETF flows, funding rates and on-chain indicators to gauge whether inflows translate into sustained price stability or transient rallies. For continuing coverage, follow COINOTAG updates and data releases.
