Bitcoin Faces First Test of This Rally as ETF Flows Turn Negative; Miner Jiang Sells 50% ETH
TREE NEWS reports: In a notable shift, Friday saw the first net outflow from U.S. spot Bitcoin ETFs since the start of their nine-day inflow streak, with $202 million exiting. Meanwhile, Ethereum ETFs continued their strong run, attracting $102 million in net inflows. The divergence has caught the attention of industry veterans, including Jiang Zhuoer, founder of the mining pool Laiti, who revealed he has sold 50% of his ETH position.
News Summary
According to WuBlockchain, Jiang Zhuoer commented that Bitcoin is experiencing its first real test of the current rally. The reversal in BTC ETF flows, after nine consecutive days of inflows, signals a potential cooling in institutional demand. In contrast, ETH ETFs remain resilient, posting another day of solid inflows. Jiang’s decision to trim his ETH holdings suggests a cautious stance despite the asset’s relative strength.
Industry Analysis
This bifurcation in ETF flows highlights a growing divergence in market sentiment between Bitcoin and Ethereum. Bitcoin’s outflow may reflect profit-taking after a strong run, or a reaction to macroeconomic headwinds. Ethereum’s sustained inflows could be driven by its broader utility in DeFi and staking, as well as anticipation of network upgrades. Jiang’s move to sell half his ETH is particularly noteworthy—it implies that even bullish long-term holders are taking some risk off the table, possibly to lock in gains or rebalance into other assets.
The development also underscores the growing influence of ETF flows as a barometer for institutional interest. A single day of outflows does not necessarily signal a trend reversal, but it does warrant close monitoring. If outflows persist, Bitcoin could face downward pressure, whereas Ethereum’s continued inflows might provide a floor.
Forward-Looking Perspective
Investors should watch the coming weeks for whether BTC ETF flows return to positive territory or if the outflow accelerates. A sustained divergence could lead to a rotation from Bitcoin to Ethereum, potentially narrowing the ETH/BTC ratio. Additionally, Jiang’s partial exit may foreshadow similar moves by other large holders, adding to short-term volatility. However, structural drivers—such as institutional adoption and regulatory clarity—remain intact, suggesting that any pullback could be a buying opportunity for long-term investors.
