Bitcoin ETFs See Four Weeks of Net Outflows Exceeding $4.5 Billion
Bitcoin exchange-traded funds (ETFs) continued to see significant net outflows this week. Institutional investors withdrew nearly $800 million, reflecting cautious sentiment amid market volatility.
Despite positive expectations surrounding the White House Crypto Summit, this was the fourth consecutive week of net outflows from Bitcoin ETFs, with over $4.5 billion withdrawn from the market during the period.
Big Outflows from Bitcoin and Ethereum ETFs
Data from SoSoValue shows that US Bitcoin ETFs saw a total of $799.39 million in net outflows this week alone. This follows five consecutive days of negative inflows, with the highest level occurring on Friday, when $409 million was withdrawn from Bitcoin ETFs.
Leading ETFs such as Ark Investors’ ARKB and Fidelity’s FBTC saw outflows of $160 million and $154.9 million, respectively, according to data from Farside Investors. Other major funds such as BlackRock’s IBIT and Grayscale’s GBTC were also affected, with negative outflows of $39.9 million and $36.5 million, respectively. Meanwhile, other issuers, except Bitwise (BITB), did not see significant fluctuations.
Ethereum ETFs Continue to See Outflows
Not only Bitcoin funds, Ethereum ETFs are also not immune to the negative trend, with net outflows for the second consecutive week. Despite positive expectations from the White House Crypto Summit, investors remain concerned about macroeconomic factors and market strategies, causing funds to continue to leave crypto-related ETF products.
Impact from Macroeconomic Factors
Although the summit was initially expected to be a positive catalyst for the market, the event failed to generate the expected growth momentum. Instead, factors such as economic uncertainty and concerns about trade tariffs are still heavily influencing investor sentiment.
Kyle Chasse, a financial analyst, said that the collapse of arbitrage trading between spot Bitcoin ETFs and CME futures contracts was one of the main reasons for the liquidity drain from the market. This led to a wave of sell-offs and outflows from crypto investment products.
QCP Capital Analyzes Market Reaction
In a recent report, QCP Capital provided a deeper look into the market reaction to the Crypto Summit. Despite President Donald Trump signing an executive order establishing a Strategic Bitcoin Reserve, the price of Bitcoin has plummeted from $90,000 to $85,000, creating a “sell the news” event.
The QCP report notes that, while the executive order was expected to be positive, the lack of an actual budget allocated for short-term Bitcoin purchases has disappointed the market.
As a result, outflows from Bitcoin ETFs spiked over the weekend as institutional investors retreated amid market uncertainty.
Short-term outlook is not optimistic
Overall, macroeconomic factors are fueling concerns among institutional investors, and this may continue to negatively impact the Bitcoin ETF market in the near term.
