Isabella García
U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a dramatic $536.4 million net outflow on Thursday, marking the largest single-day withdrawal since August 1. Data from SoSoValue shows that eight out of 12 Bitcoin ETFs recorded outflows, led by $275.15 million from Ark & 21Shares’ ARKB. Fidelity’s FBTC followed with $132 million in outflows, while ETFs managed by BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie also reported losses.
Spot Ethereum ETFs were not immune, reporting $56.9 million in net outflows, reversing the gains observed over the previous two trading sessions. Analysts link this trend to a broader investor risk-off sentiment affecting the crypto market.
Nick Ruck, director at LVRG Research, stated that “The $536 million in net outflows primarily reflects a sharp surge in investor risk aversion,” attributing the caution to macroeconomic pressures like changing U.S. tariff policies and a recent market-wide deleveraging event.
Impact of U.S.-China Trade Tensions and Liquidations
The recent withdrawals come in the wake of a historic crypto liquidation event, which wiped out over $20 billion in leveraged positions, affecting more than 1.5 million traders. These liquidations were triggered by U.S. President Donald Trump’s announcement of 100% tariffs on Chinese imports, heightening sensitivity among traders in crypto and other risk assets.
Ruck warned that the ETF outflows indicate increased short-term market fragility, suggesting the possibility of further downward price pressure.
Market Analysts Weigh In
Justin d’Anethan, Head of Research at Arctic Digital, commented: “We’re witnessing a market that wants to stabilize, but it is still navigating two major forces: geopolitical uncertainty and the lingering effects of restrictive monetary policies.”
Crypto prices mirrored the ETF outflows, with Bitcoin down 2.36% to $108,360 and Ethereum dropping 2.56% to $3,900, according to PRIME.
Despite the short-term turbulence, d’Anethan emphasized a cautiously optimistic outlook: “Structurally, the inflation story is softening, and central banks are nearing a pivot point. Until clearer signals emerge from CPI data, policy updates, or diplomatic progress, volatility is likely to remain elevated.“
