The digital asset market continues to face uncertainty, characterized by heightened volatility leading to a lack of clear bullish or bearish trends.
This instability can be attributed to two key factors affecting the market dynamics—the ongoing trade disputes and the disruptions caused by DeepSeek within the cryptocurrency sphere.
Further adding to the unpredictability, former U.S. President Donald Trump recently unveiled plans for imposing ‘reciprocal tariffs’ on multiple nations, with more details anticipated by the 10th or 11th of February.
Consequently, the cryptocurrency market has felt the repercussions of escalating global economic tensions, mirroring the broader instability influencing financial sectors.
Bitcoin ETF Performance Impact
Within the backdrop of the current market turbulence, the landscape of spot Bitcoin [BTC] exchange-traded funds (ETFs) has witnessed notable fluctuations.
Recent data from Farside Investors reveals that spot BTC ETFs observed an inflow of $171.3 million on the 7th of February, following a substantial outflow of $140.2 million the day before.
In terms of inflows, Invesco’s BTCO took the lead with $59 million, trailed by Fidelity’s FBTC recording $52.5 million in inflows.
Additionally, BlackRock’s IBIT and VanEck’s HODL experienced nearly equal inflows of $21.9 million and $21.8 million, respectively.
Meanwhile, certain ETFs like Grayscale’s GBTC remained stagnant with no recorded flows, indicating the varied investor sentiments prevailing in this sector.
This aligns with Bitcoin trading positively at $97,823.02 at the time of reporting, marking a 1.12% increase over the past 24 hours according to CoinMarketCap.
Ethereum ETF Trends Analysis
In contrast, Ethereum [ETH] ETFs, which had exhibited consistent inflows since January 30th, recorded zero flows for the first time as per data from Farside Investors.
Correspondingly, ETH traded in the negative at $2,657.87 at the time of writing, indicating a slight 0.06% decline as per CoinMarketCap.
The divergence in trends emphasizes the growing interest in Ethereum ETFs, even as Bitcoin continues to dominate the price movements in the market.
Notably, during the initial week of February, ETH ETFs surpassed their BTC counterparts with inflows amounting to $420 million compared to Bitcoin ETFs’ $173 million, as reported by SoSo Value and Farside Investors.
However, analysts at Coinbase, including David Han and David Duong, suggest that this trend is predominantly driven by institutional players engaging in ETH ‘basis trade.’
Consequently, as the market adapts to ongoing volatility, Ethereum’s increasing prominence in the ETF arena hints at potential shifts in investor strategies that could influence future market trends.