BTC ETF outflow pace slowing, signaling easing sell pressure

While outflows from BTC spot ETFs persist, their pace has slowed noticeably, suggesting that selling pressure is beginning to ease. In an interview with Decrypt, Adam Hames, head of asset management at Tesseract Group, noted that while selling pressure is not yet fully stabilized, it is gradually abating. He attributed the recent outflows primarily to two factors: funds unwinding arbitrage positions between BTC ETFs and futures, and a large-scale exit from the ETF product with the highest fees. Hames argued that these outflows are due to structural factors and are likely to resolve naturally over time. He stressed that it is difficult to conclude that overall market sentiment has completely collapsed, given that the recent capital flight is concentrated in specific ETFs while some others continue to see net inflows.