Compass Investments

Bitcoin and Ether spot funds extended their losing streak on Tuesday, recording a fifth consecutive day of outflows amid growing market uncertainty.

According to Farside Investors, net outflows from spot bitcoin ETFs totaled $578 million, the largest daily outflow since mid-October.

BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC led the outflows, indicating that institutional investors have stopped accumulating assets.

Ether ETFs experienced similar pressure, with outflows reaching $219 million. Fidelity’s FETH and BlackRock’s ETHA were the hardest hit, bringing the total outflows from ether ETFs since the end of October to nearly $1 billion.

While bitcoin and ether funds struggled, Solana-based ETFs continued to attract funds.

et inflows into Solana ETFs totaled $14.83 million on Tuesday, marking the sixth consecutive day of gains.

Inflows were led by Bitwise’s BSOL and Grayscale’s GSOL, indicating that despite a general decline in risk appetite, investors are favoring new yield-oriented assets. Vincent Liu, chief investment officer at Kronos Research, told Cointelegraph that the outflows have more to do with macroeconomic pressures than with waning confidence in crypto assets.

Several days of consecutive redemptions show that institutional players are reducing risk amid declining leverage and mounting macroeconomic stress, Liu said. Until liquidity conditions normalize, capital rotation will support outflows from ETFs.

He added that the strengthening U.S. dollar and reduced liquidity have triggered widespread risk aversion. Liu pointed out that the continued inflows into Solana are due to a combination of interest and opportunity-seeking.

Solana’s strength is partly that new inflows coincide with a new story: a fresh ETF with an attractive yield attracts interested capital, he explained. Its speed, rate and narrative support the uptrend.

However, Liu cautioned that Solana’s growth remains a niche phenomenon. It is a narrative movement of early adopters chasing returns and growth. The broader market is still in risk minimization mode, he concluded.