U.S. Spot Crypto ETFs See $530 Million Withdrawn in One Day

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On Thursday, U.S. spot Bitcoin and Ether ETFs experienced net outflows totaling approximately $530 million, reversing gains recorded the previous day amidst a sharp downturn in the cryptocurrency market. This notable movement reflects the volatile nature of investor sentiment and its immediate impact on fund flows.

Shift in Bitcoin and Ether Fund Flows

Data from SoSoValue revealed that spot Bitcoin ETFs saw withdrawals of $430 million, while spot Ether ETFs recorded approximately $100 million in outflows. This marked a stark contrast to the $128 million inflows observed across both asset groups on Wednesday.

On that same day, Bitcoin briefly surpassed $80,000 before retreating below $76,000 on Thursday. The Nasdaq Composite Index, heavily weighted by tech stocks, also tumbled 5.5%, marking its steepest daily decline since April 2025.

Michaël van de Poppe suggested that a bottom could form in the Nasdaq on Friday, with Bitcoin expected to establish a short-term floor after testing levels below $75,000.

Fidelity and BlackRock Funds Lead Outflows

According to Farside Investors, the largest outflow occurred in Fidelity’s Wise Origin Bitcoin Fund, which saw a $200 million withdrawal. This came after drawing in approximately $237 million the previous day, highlighting the sharp swings in investor appetite.

BlackRock’s iShares Bitcoin Trust reported a net outflow of $105 million, extending its withdrawal streak to five consecutive trading days, with total outflows exceeding $1 billion since October 30.

Spot ETFs, which track an asset directly, allow investors to access cryptocurrency price movements without holding the asset itself.

Year-to-Date Trends Turn Negative

Following Thursday’s close, net flows for spot Bitcoin ETFs have reversed to $510 million in outflows for the year, suggesting that sell-off pressure has persisted beyond daily fluctuations.

Crypto analyst Michaël van de Poppe noted that Bitcoin faced additional pressure from the Nasdaq’s sharp decline. He anticipates that a search for a bottom might conclude on Friday, potentially occurring after a dip below $75,000.

Market Conditions Compared to 2008 Era

Dean Lyulkin, CEO of Cardiff and founder of The Dean’s List investment publication, argued that current market conditions differ from those leading up to the 2008 global financial crisis. He recalled how aggressive interest rate hikes by the Federal Reserve preceded a noticeable weakening of the housing market back then.

While acknowledging vulnerabilities in commercial real estate, private credit, and AI spending, Dean Lyulkin emphasized, “Household balance sheets and the banking system are much stronger today.”

Lyulkin acknowledged existing risk areas but asserted that the financial structure is more resilient now compared to past crisis periods. Consequently, the intensifying sell-off triggered by ETF outflows is being assessed cautiously yet remains distinct within the broader economic landscape.