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U.S.-listed spot bitcoin ETFs endured their second-largest daily outflow on record Thursday, shedding $869.86 million as bitcoin slid through the $100,000 support zone and liquidity dried up across risk markets. The exodus lifts three-week cumulative outflows to $2.64 billion, underscoring how quickly institutions can reverse course when macro sentiment sours. (CoinDesk)
ETF Breakdown
According to SoSoValue data cited by CoinDesk, all 11 spot products participated in the bleed, with the heaviest redemptions coming from the biggest issuers that dominate secondary-market volumes. The synchronized selling is notable because it arrived just two weeks after the cohort posted their third-strongest inflow streak of the year, showing how reactive ETF flows have become to intraday price levels.
Ether funds were not spared: U.S. spot ETH ETFs saw $259.72 million leave the door on the same day, their largest daily outflow since October 13. That cross-asset drain hints at broad de-risking rather than token-specific news. BTC itself traded near $97,500 during the U.S. morning session—down 5% on the day and 11% month to date—as futures funding flipped negative across major venues. (CoinDesk)
Macro Drivers
The ETF reversal coincides with a global risk-off stretch triggered by weaker-than-expected Chinese industrial data, fading hopes of a near-term Federal Reserve rate cut, and a stronger U.S. dollar. U.S. equity gauges closed lower for a third straight day, while gold and Treasurys caught a safety bid. In that environment, ETF market makers tend to redeem shares for underlying BTC rather than warehouse exposure overnight, accelerating spot selling on Coinbase, Kraken, and LMAX.
What to Watch
- Liquidity: Market depth below $95,000 has thinned materially; additional redemptions could push BTC toward the $94,000 liquidity pocket highlighted by derivatives desks.
- Volatility: Rolling 30-day realized volatility has climbed back above 45%, which historically keeps ETF flows choppy as allocators wait for calmer tape.
- Institutional Intent: A return to net inflows will depend on whether long-only managers still view BTC as a macro hedge despite higher yields.
For now, ETF data confirm what price action already implies: larger players hit the eject button the moment psychological levels give way.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research.