This week's crypto market spot ETF experienced an interesting divergence——both Bitcoin and Ethereum spot ETFs recorded their first weekly net outflows of the year, but the story behind these numbers is much more complex.

According to the latest data, the US Bitcoin spot ETF saw a total outflow of $681 million this week. It seems like a lot, but based on the performance of various products, this actually reflects a market reallocation.

Fidelity's FBTC led the outflow list, with a weekly net outflow of $481 million — this is indeed a significant amount. But don't rush to conclusions; FBTC's total inflows have reached $11.72 billion, indicating that institutional confidence in this product remains strong. Grayscale's GBTC followed closely, with a weekly outflow of $172 million, while ARK's ARKB and Grayscale's BTC products also saw outflows of $45.34 million and $22.05 million respectively.

Interestingly, not all BTC spot ETFs are experiencing outflows. BlackRock's IBIT instead attracted $25.86 million, Invesco Galaxy BTCO and Franklin Templeton EZBC added $15.02 million and $13.64 million respectively. Valkyrie BRRR and WisdomTree BTCW also recorded net inflows of $7.19 million and $1.92 million. This indicates that funds are shifting among institutions rather than overall withdrawal.

From the broader market perspective, the total assets of Bitcoin spot ETFs have reached $116.86 billion, accounting for 6.48% of Bitcoin's total market cap. Since their launch, these ETFs have accumulated net inflows of $56.40 billion — a quite substantial figure, reflecting traditional financial institutions' recognition of Bitcoin as an asset class.

The situation for Ethereum spot ETFs is similar but slightly smaller in scale. This week, there was a net outflow of $68.57 million, also the first of the year. Grayscale's ETHE had the most prominent weekly outflow of $145 million, but it's important to note that ETHE is a structured product, so market adjustments are normal. Grayscale ETH and VanEck ETHV saw outflows of $36.04 million and $6.85 million respectively.

On the other hand, BlackRock's ETHA performed exceptionally well, with a weekly net inflow of nearly $104 million, and total inflows reaching $12.72 billion, making it a major player in Ethereum spot ETFs. Bitwise ETHW and Franklin EZET also added $9.9 million and $2.38 million respectively.

As of now, the total assets of Ethereum spot ETFs stand at $18.70 billion, accounting for 5.04% of Ethereum's total market cap, with a total net inflow of $12.43 billion.

What do these data points reflect? On one hand, institutional investors are dynamically adjusting their holdings based on their strategies, with the largest outflows often coming from early large-scale products, while emerging or specialized ETFs attract incremental funds. On the other hand, spot ETFs as an asset allocation tool have become an important channel for traditional finance to enter crypto assets. The continued growth in scale and market share indicates that this trend remains unchanged.

The short-term outflows this week may simply be market adjustments, but in the long run, the contribution of spot ETFs to the market depth and liquidity of Bitcoin and Ethereum is undeniable.