U.S. spot Bitcoin ETFs saw $1.62 billion in outflows over four consecutive trading days, marking one of the largest redemption periods since the ETFs launched in early 2024.
The outflow streak began last Friday with a $394.68 million withdrawal, accelerated to $483.38 million on Tuesday, peaked at $708.71 million on Wednesday, and continued with $32.11 million on Thursday, according to SoSoValue data.
Institutional interest in Bitcoin ETFs has fallen as the yield on the basis trade—profiting from the gap between spot and futures prices—dropped below 5%, down from 17% last year. Matt Hougan, CIO at Bitwise, explained that lower profitability drives fast-moving hedge funds to exit quickly.
Bitcoin itself has mirrored the risk-off sentiment, falling from highs above $97,000 to around $89,500, down 5.4% on the week. The S&P 500 also gapped down nearly 54 points over the weekend, reflecting broader market caution.
Retail investors appear less active, and prediction markets now assign a 30% chance Bitcoin could fall to $69,000, up from 11.6% the previous week. Analysts note that large players’ absence at current levels has added pressure to the market.
Observers point to macro conditions and Federal Reserve policy as key factors. A dovish Fed appointment could restore risk appetite, while stabilization in broader markets may ease ETF outflows.
Despite short-term pressures, Hougan remains optimistic about long-term growth. “I remain confident we’ll be moving to new all-time highs this year,” he said, adding that the current crypto bull market will be more of a “grind” than a rapid rally.
