Bitcoin and Ethereum exchange-traded funds recorded significant joint inflows on November 25, defying the recent bearish price trend. In this dynamic environment of cryptocurrencies, analyst Eric Balchunas highlighted the contrast between the massive volumes of the leaders and the modest debut of new alternative products.
Fidelity led the day with its FBTC fund capturing 170.80 million dollars in positive net inflows leading institutional interest, while BlackRock’s IBIT added another 83.01 million dollars to its reserves. On the other hand, SoSoValue data reveals that Ethereum ETFs also showed strength, adding 78 million dollars driven mainly by BlackRock and Fidelity products. Additionally, the daily cumulative volume remained steady exceeding 4.69 billion, although some smaller issuers like Bitwise and Ark experienced notable capital outflows.
In parallel, the market witnessed the launch of Grayscale’s GDOG fund, which debuted with a trading volume of 1.4 million dollars on its first day. However, this performance was below analysts’ expectations, who projected figures close to 12 million. Likewise, the newly launched XRP ETFs surprised the market, attracting nearly 130 million dollars on their inaugural day of operations.
Can the diversification of ETF products sustain the global crypto market recovery?
This phenomenon of multiple launches responds to an easing of SEC rules, allowing greater direct exposure to digital assets beyond the market leaders. Balchunas noted that as products move away from Bitcoin, interest tends to decrease, which explains the volume difference. Therefore, the cryptocurrencies industry observes how competition intensifies, as the arrival of more than 100 new ETFs is expected in the next six months.
Despite the positive flows into the funds, Bitcoin’s price faces considerable pressure, preparing to close the month of November in red numbers breaking its historical bullish pattern. Bitfinex analysts attribute this drop to previous overheated buying, where many short-term investors are now capitulating to unrealized losses. Nevertheless, if the Federal Reserve keeps rates unchanged, the asset could remain stuck in a sideways range until the end of December.
The market is at a crossroads where institutional adoption through ETFs contrasts with short-term technical price weakness. While investment products continue to attract capital, the profitability of short-term holders is being severely tested. Finally, attention will focus on whether “whale” demand and new products for cryptocurrencies will manage to reverse the trend before the annual close.
