Key Notes
- Bitcoin ETFs recorded only four days of positive inflows this month, with total monthly outflows reaching approximately $3.65 billion amid growing market concerns.
- BlackRock's IBIT, the largest Bitcoin ETF by assets, experienced its biggest single-day outflow of $418 million as institutional investors adjust strategies.
- Despite Trump's initially positive impact on crypto sentiment, recent tariff policies have created market uncertainty while Bitcoin dropped below $80,000 and Ethereum fell to around $2,100.
Bitcoin exchange-traded funds (ETFs) in the US crypto ecosystem have seen $3.2 billion in outflows over the past eight days. This marks one of the longest losing streaks since these funds were launched, matching a similar trend in August 2024.
Heavy Bitcoin ETF Withdrawals
It is worth mentioning that Bitcoin ETFs have had only four days of positive inflows this month. So far, the total outflows for this month are around $3.65 billion, according to Farside Investors. This persistent decline led to concerns among market watchers about the stability of crypto ETFs in the short term.
Unfortunately, Tuesday marked the worst day for regular American traders and institutional investors, with a record $1.14 billion pulled out. As if this was not enough, BlackRock’s IBIT, the largest Bitcoin ETF by net assets, saw its biggest-ever single-day outflow of $418 million on Wednesday.
This is particularly worrisome as corporate investors, who typically have long-term positions, adjust their strategy in response to market conditions.
Meanwhile, outflows slowed slightly on Thursday, with $275.8 million withdrawn. While this marked an improvement, it still means that investor sentiment remains weak and fearful.
Notably, IBIT still led the losses, with investors pulling out $189 million. Bitwise’s BITB was the only fund to see inflows, bringing in $17.6 million. With this, one thing is apparent: while the overall market is witnessing large withdrawals, some investors still see investment opportunities.
The total net inflows across all 12 Bitcoin ETFs now sit at $36.85 billion. Again, this is the lowest level since January. These funds hold $94.3 billion in assets, about 5.7% of Bitcoin’s total market value.
Meanwhile, spot Ethereum ETFs are also bearish, with $71 million in outflows on Thursday. This marks six straight days of withdrawals, totaling $315 million. Generally, this implies that it is not only Bitcoin that is struggling; investors are also pulling out from other major crypto funds.
Market Worries and Trump’s Impact
Furthermore, the digital asset economy is going through a tough time. For context, Bitcoin has dropped by over 7% in the last 24 hours, slipping below $80,000.
Ethereum’s second-largest altcoin is also down 9.9%, now trading around $2,100. The GMCI 30 Index, which tracks the top 30 cryptocurrencies, has fallen 8.3%.
The present bearish sentiment around crypto ETFs comes with concerns about the US economy. Initially, Donald Trump’s pro-crypto stance boosted investor confidence. However, his recent tariff policies have made investors uneasy.
Nevertheless, the market is still showing some positivity, as Coinspeaker reported earlier this week. Notably, Bitcoin ETF products in the US reached a $750 billion volume milestone.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
