Bitcoin ETFs See $1.2B Weekly Outflow Amid Wall Street’s Growing Crypto Focus

Bitcoin exchange-traded funds (ETFs) faced their third-largest weekly outflow on record, with over $1.2 billion exiting spot Bitcoin products, despite renewed optimism in crypto markets. Data from SoSoValue shows that Ethereum ETFssaw $508 million in outflows, while Solana ETFs attracted $137 million in new investments. The trend comes even as Bitcoin’s price rebounded 4.4% to $106,172 and Ethereum rose 7.2% to $3,617, recovering from losses triggered by U.S. macroeconomic uncertainty and the government shutdown.

Analysts say the recent Bitcoin ETF outflows are less about investor panic and more about profit-taking after one of the strongest inflow streaks since early 2024. Market conditions also appear to be improving, with liquidity indicators such as the SOFR-EFFR spread tightening and the U.S. dollar index losing momentum. Moreover, borrowing from the Federal Reserve’s standing repo facility has fallen to zero, suggesting easing financial conditions that could support renewed risk appetite.

While retail activity cools, Wall Street’s influence on crypto continues to expand. BlackRock’s Bitcoin ETF leads the market in yearly inflows, with Fidelity and VanEck broadening their crypto offerings. However, institutional investors still prefer off-chain exposure through ETFs rather than direct blockchain participation, citing infrastructure reliability concerns. As Annabelle Huang of Altius Labs noted, this cautious approach limits crypto’s potential for full transparency and liquidity.

According to Enflux, a leading market maker, the shift highlights crypto’s transformation from speculative trading to a more professional and integrated financial system. The firm added, “When the Fed injects, Bitcoin rallies; when yields twitch, it falls. The dream of decoupling is gone—for now, the market must evolve or fade.”