Bitcoin ETFs See $1.3B Outflow, Largest Since Late June

Bitcoin ETFs See Largest Weekly Outflows Since June Amid Market Downturn

Investors withdrew a net $1.21 billion from BlackRock’s iShares Bitcoin Trust (IBIT) last week, marking the largest weekly outflows for U.S. spot Bitcoin exchange-traded funds (ETFs) since late June. The significant withdrawals, totaling $1.28 billion across all U.S. spot Bitcoin ETFs, occurred as Bitcoin’s price dipped below $76,000 and U.S. technology stocks experienced a sell-off.

Year-to-Date Outflows Mount for Bitcoin ETFs

The recent outflows have pushed the cumulative net withdrawals for U.S. spot Bitcoin ETFs to approximately $919 million for the year, according to data from SoSoValue. This follows a $515 million net outflow recorded in October, indicating a sustained period of investor caution.

Factors Contributing to Market Volatility

Several factors contributed to the downturn in the cryptocurrency market last week. Bitcoin’s price decline was influenced by the fallout from Binance’s $6.3 billion hack, uncertainty following the U.S. midterm elections, and a broader sell-off in technology stocks.

BlackRock’s IBIT, the world’s largest spot Bitcoin ETF by assets, was at the forefront of these outflows, recording $1.21 billion in net withdrawals, as reported by Farside Investors. This extended IBIT’s losing streak to six consecutive trading sessions, with approximately $1.44 billion pulled from the fund since October 30. IBIT accounted for roughly 95% of the total weekly outflows reported by SoSoValue.

Mixed Performance Among Bitcoin Funds

While many funds experienced outflows, Fidelity’s Wise Origin Bitcoin Fund (FBTC) managed to attract about $93 million in net inflows for the week, despite experiencing nearly $200 million in outflows on Thursday alone.

Investor Sentiment and Market Outlook

According to Bitfire Research, shifting expectations regarding U.S. interest rates, post-midterm election uncertainty, and weakness in the technology sector have weighed heavily on crypto markets. Investors are also reportedly reassessing the likelihood of Congress passing the CLARITY Act before the end of the year.

Bitfire noted a Crypto Fear & Greed Index reading of 25, signaling extreme fear, and a negative Coinbase Premium, suggesting Bitcoin was trading at a discount on Coinbase relative to its benchmark. The firm described the market as being in a “breakdown and bottom-seeking phase,” with upcoming U.S. inflation data and Federal Reserve signals being key indicators to monitor. A sustained break below the $74,400–$75,000 support range could trigger further selling pressure.

At the time of publication, Bitcoin was trading at $74,049, down 5% over the past seven days and 2.3% in the last 24 hours, according to CoinGecko.