- Bitcoin ETFs saw $3.2B in outflows over eight days, the longest streak yet.
- BlackRock’s IBIT led with a $418M single-day withdrawal.
- Crypto sell-offs deepen as market uncertainty and tariffs hit investor sentiment.
Spot Bitcoin exchange-traded funds in the U.S. experienced $3.2 billion in net outflows during the last eight days. This run equals the longest span of withdrawals since these funds were initiated. The trend aligns with a wider decline in both the cryptocurrency and stock markets. Even with the downward trend, Thursday’s outflows were reduced in comparison to the start of the week.
On Tuesday, spot Bitcoin ETFs saw a historic one-day net withdrawal of $1.14 billion. The next day, BlackRock’s IBIT experienced its biggest withdrawal ever, totaling $418 million. Nevertheless, the outflows on Thursday were milder, amounting to $275.8 million. IBIT maintained its position at the top of the withdrawals with $189 million in outflows, while Bitwise’s BITB was the sole fund to show positive inflows of $17.6 million.
The continuous outflows have driven the total net inflows of the 12 Bitcoin ETFs to $36.85 billion. This represents the lowest point since the middle of January. The overall net assets of these funds currently amount to $94.3 billion, accounting for approximately 5.7% of Bitcoin’s market cap.
Spot Ether ETFs Experience Steady Withdrawals
Along with Bitcoin, spot Ether ETFs have experienced sustained withdrawals as well. These funds experienced net withdrawals of $71 million on Thursday, marking their sixth consecutive day of losses. During this time, the overall outflows from Ether ETFs totaled $315 million.
The larger cryptocurrency market continues to face challenges, witnessing one of its largest drop-offs in recent times. Bitcoin decreased by 7% in the last 24 hours, sinking under the $80,000 level, while ether declined by 9.9%, trading near $2,100
Investor Sentiment Impact Crypto Funds
The recent surge of withdrawals from spot Bitcoin and Ether ETFs reflects wider market worries. Investor sentiment has been influenced by economic ambiguities and changing policies.
The cryptocurrency sector continues to be linked to the U.S. economic performance, affecting trading patterns.
A major reason behind the sell-off is the recent tariff measures implemented by Donald Trump. Although his reelection first sparked hope in the crypto industry, the later tariff announcements have caused a decline in both stock and crypto values. Investors have reacted by shedding risk assets, leading to additional downturns in digital asset markets.
The continuous withdrawals underscore the unpredictability of the cryptocurrency market and the responsiveness of digital asset funds to wider economic changes. Although certain investors are still wary, market analysts keep observing the circumstances to evaluate possible recovery patterns.
The continuous withdrawals from U.S. spot Bitcoin ETFs indicate a wary stance from investors amidst persistent market uncertainties. Having seen $3.2 billion withdrawn over the last eight days, the funds are experiencing one of their toughest times. The ongoing decline in Ether ETFs highlights the strain on the cryptocurrency market even more. As economic conditions change, the cryptocurrency industry will monitor investor reactions in the upcoming weeks.
