Bitcoin ETFs Experience Significant Outflows Amid Market Sell-Off
U.S. spot Bitcoin exchange-traded funds posted $869.9 million in net outflows on Thursday, marking the second-largest single-day exit since their launch. This significant outflow coincided with a broader cryptocurrency market sell-off, during which Bitcoin's price fell by 6.4% to $96,956.
Breakdown of Outflows by Fund
Grayscale's Bitcoin Mini Trust led the outflows, recording $318.2 million in net departures, according to data from SoSoValue. BlackRock's IBIT saw $256.6 million in net outflows, and Fidelity's FBTC experienced $119.9 million in exits. Other funds that posted net outflows included Grayscale's GBTC, and ETFs from Ark and 21Shares, Bitwise, VanEck, Invesco, Valkyrie, and Franklin Templeton.
Historical Context of Outflows
Thursday's outflows rank as the second-largest daily outflow observed since the launch of these Bitcoin ETFs. The largest outflows previously occurred on February 25, 2025, when funds experienced a total of $1.14 billion in single-day departures.
Expert Analysis of Market Sentiment
Vincent Liu, CIO of Kronos Research, characterized these large outflows as a "risk-off reset," suggesting that institutions are pulling back their investments amidst prevailing macroeconomic concerns. He noted that while these flows may weigh on short-term momentum, they do not diminish the broader structural demand for Bitcoin. Liu also pointed out that these bleed-outs align with oversold market conditions.
Min Jung, a research associate at Presto Research, observed that the current trend signals a broad de-risking across financial markets. Investors are reportedly rotating capital away from higher-beta assets and towards safer havens, reflecting growing uncertainty surrounding the Federal Reserve's monetary policy path and a deteriorating macroeconomic sentiment.
Potential Support Levels and Rate Cut Expectations
Justin d'Anethan, head of research at the markets advisory firm Arctic Digital, identified current price levels as potential support zones. He stated that prices reaching the lower $90,000s could present buying opportunities, particularly for investors who have been on the sidelines. Expectations for interest rate cuts have also been recalibrated, with the odds of a December rate cut dropping to 52.1%, according to CME Group's FedWatch tool.