Bitcoin ETFs Face Record $937M Outflow as Market Recalibrates

Bitcoin ETFs have seen their largest daily outflow since their launch in early 2024, with nearly $937.9 million worth of BTC withdrawn from 11 funds, according to analytics platform SpotOnChain. The biggest losses came from Fidelity’s FBTC, which saw $344.7 million in outflows, followed by BlackRock’s IBIT with $164.4 million. Bitwise and Grayscale mini ETF both lost approximately $88 million each. Ark Invest, led by Cathie Wood, was not included in the data but may have also experienced a significant outflow.

The sell-off coincided with Bitcoin dropping below $90,000 for the first time in four months, briefly hitting $87,000 before rebounding to around $89,020, marking a 2.45% recovery. The downturn comes amid global economic uncertainties, including potential U.S. trade tariffs on Canada and Mexico and uncertainty surrounding the Federal Reserve’s stance on interest rates.

Despite the pullback, Binance CEO Richard Teng believes this is a "tactical retreat, not a reversal." He emphasized that the crypto market has historically rebounded after corrections, drawing parallels to Bitcoin’s 2020 plunge during the Fed’s rate hikes. Teng noted that key crypto fundamentals remain strong and described the current market movement as a “recalibration” rather than a long-term downturn.

Bitcoin ETFs, approved by the SEC in January 2024, have played a crucial role in institutional adoption, making the recent withdrawals significant. However, analysts suggest that such volatility is expected as markets adjust to macroeconomic shifts. With Bitcoin's historical resilience and growing institutional interest, many remain optimistic about its long-term trajectory.