Recent developments in the U.S. cryptocurrency market have raised eyebrows among investors, as spot-listed Bitcoin (BTC) exchange-traded funds (ETFs) have experienced three consecutive days of substantial outflows, amounting to a total of $494 million. The latest figures indicate that Wednesday saw the largest withdrawal, with a striking $251 million exiting these investment vehicles.
Among the ETFs affected, BlackRock’s iShares Trust (IBIT) reported a notable outflow of $22.1 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) experienced the largest single-day outflow of $102 million, based on data provided by Farside data.
The observed outflows correspond with a period of low trading volume for these ETFs. On Wednesday, total ETF volume was recorded at just $2.58 billion, with IBIT alone trading under $2 billion—marking a significant decline that placed it as the tenth most traded U.S. ETF. Historically, IBIT has secured a position among the top five ETFs traded when Bitcoin’s price is on the rise or gaining momentum, according to insights from Coinglass data.
Further complicating the outlook, a recent filing by Goldman Sachs regarding Bitcoin ETFs underscores a growing sense of tepid demand for new net long positions. This trend reflects a broader aversion towards these funds, which are predominantly utilized as trading tools in the volatile crypto market.
As of now, Bitcoin prices hover around $96,000, situated within a trading range that stretches between $90,000 and its all-time high of $109,000—an environment that has persisted since mid-November. In the wake of these outflows and subdued trading activity, market participants are left pondering the implications for Bitcoin and the future of cryptocurrency ETFs.
