U.S. spot Bitcoin ETFs recorded their largest single-day net outflows on Tuesday, with investors withdrawing $1.01 billion, excluding Ark Invest’s ARKB. Out of 12 ETFs, 10 saw outflows, marking the sixth straight day of withdrawals, totaling over $2 billion.
Fidelity’s FBTC led the exits with $344.65 million, followed by BlackRock’s IBIT ($164.3 million). Other major withdrawals came from Valkyrie’s BRRR ($100 million), Bitwise’s BITB ($88.3 million), and Grayscale’s Mini Bitcoin Trust ($85 million).
The sell-off coincided with a market downturn that saw Bitcoin drop to $88,000—its lowest level this year—while altcoins like Ether, XRP, and Solana also declined.
Analysts attributed the outflows to institutional rebalancing, profit-taking after Bitcoin’s 2024 rally, and macroeconomic concerns like Federal Reserve rate policies and global trade uncertainties. Hedge funds unwinding arbitrage trades between Bitcoin ETFs and CME futures also contributed to the decline.
Despite the withdrawals, U.S. Bitcoin ETFs still hold $101.4 billion in net assets, with cumulative inflows at $38 billion. Analysts believe the long-term outlook remains strong, particularly post-halving, though short-term volatility is expected.
Bitcoin was trading at $88,437 as of 2:00 p.m. Wednesday in Hong Kong, down 3.9% in 24 hours.
Image Credit: Pixabay
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