U.S. spot Bitcoin exchange-traded funds (ETFs) registered $40.5 million in net outflows on Monday, marking the fourth straight day of negative flows for these investment vehicles. BlackRock's IBIT led the exodus with $100.7 million leaving the fund, according to data from SoSoValue.
Five other funds, managed by Fidelity, Grayscale, Bitwise, VanEck, and Invesco, recorded inflows that partially offset BlackRock's losses. The four-day outflow streak follows Friday's $366.6 million and Thursday's $536.4 million in withdrawals from spot Bitcoin ETFs.
Market Reaction and Price Movements
The withdrawals occurred as Bitcoin briefly climbed above $111,000 on Monday following a three-day decline. However, the flagship cryptocurrency dropped 3% over the subsequent 24 hours to reach $107,871 as of 7:10 a.m. UTC Tuesday.
Vincent Liu, Chief Investment Officer at Kronos Research, explained that prices advanced despite ETF outflows as spot and derivatives demand compensated for institutional redemptions. This dynamic particularly emerged during risk-on market shifts when ETF flows lagged underlying market appetite.
Liu noted that market structure complexities blur the relationship between actual demand and ETF data. Hedging flows, derivative rotations, and reporting lags contribute to this disconnect between institutional and retail sentiment, he added.
Ethereum ETFs Also Experience Outflows
Spot Ethereum ETFs also experienced withdrawals on Monday, recording $145.7 million in net outflows. This marked the third consecutive day of negative flows for Ethereum exchange-traded funds.
Investor Sentiment and Market Indicators
The combined outflows from both Bitcoin and Ethereum ETFs signal cautious positioning among institutional investors. Market participants continue to monitor these flows as indicators of institutional appetite for crypto exposure.