U.S. Bitcoin and Ether ETFs Face $593 Million Outflow Amid Market Volatility

U.S.-listed cryptocurrency exchange-traded funds (ETFs) faced a significant setback Thursday, ending a two-week streak of steady inflows as investors withdrew funds amid heightened market turbulence. Data from SoSoValue revealed that the 11 U.S. Bitcoin ETFs recorded a combined net outflow of $536.4 million, while Ether ETFs saw an additional $56.8 million in withdrawals.

Among major issuers, BlackRock’s iShares Bitcoin Trust (IBIT) lost $29 million, Fidelity’s FBTC reported $132 million in outflows, and Grayscale’s GBTC shed $67 million. Smaller funds, including Bitwise and VanEck, also registered redemptions. The sell-off reflects a sharp reversal after a volatile fortnight that saw Bitcoin’s price tumble from $126,000, driven by leveraged liquidations, technical issues in Binance’s data feeds, and renewed U.S.–China trade tensions.

Analysts at Citi noted that the drawdown underscores Bitcoin’s increasing correlation with equities, highlighting its exposure to broader market risk. Meanwhile, Glassnode characterized the correction as a “necessary reset” following one of the largest futures deleveraging events in crypto history.

A recent Unchained report also emphasized how the rise in ETF options activity has transformed fund flows, turning what was once a consistent demand driver into a reflection of shifting investor sentiment. Despite the pullback, Citi reaffirmed its year-end Bitcoin price target of $133,000, citing ongoing institutional engagement and resilient ETF participation.

With analysts maintaining a cautiously optimistic outlook, the recent correction may represent a healthy recalibration rather than a long-term bearish shift. As market dynamics evolve, ETF investors appear to be adjusting strategies to navigate the increasing interplay between traditional finance and digital assets.