Spot Bitcoin ETFs Shed $1.62B in Four-Day Negative Streak

Spot Bitcoin Exchange-Traded Funds (ETFs) experienced their most significant sustained period of institutional withdrawal since their inception in January, recording cumulative net outflows of $1.62 billion across four consecutive trading days. This severe negative streak, which concluded late last week, signals a noticeable cooling in institutional appetite for the digital asset.

The massive exodus began with daily outflows consistently exceeding $300 million and culminated in one day where withdrawals topped $450 million, according to data compiled by financial analysts and fund trackers. While Grayscale’s converted fund, GBTC, historically accounts for the largest share of outflows, the recent streak saw withdrawals spread across multiple issuers, reflecting broader market apprehension.

The period of net selling directly coincided with significant volatility in the underlying asset. During the same timeframe, the price of Bitcoin (BTC) retreated sharply from previous highs, dropping below the critical $65,000 support level and briefly testing the $60,000 mark. This correlation underscores the tight link between the inflow/outflow dynamics of the U.S. ETFs and the immediate valuation pressure on Bitcoin.

Market experts attribute the reversal in ETF flows to a confluence of factors, including strategic profit-taking after a strong rally in the first quarter, as well as prevailing macroeconomic headwinds. Uncertainty regarding the Federal Reserve’s timeline for interest rate cuts, coupled with generally lower risk appetite across traditional financial markets, has led institutional investors to de-risk their crypto exposure.

Despite this temporary setback, the spot ETFs still collectively hold substantial assets under management (AUM). However, the four-day outflow streak marks a pivotal moment, shifting the narrative from relentless demand to one focused on consolidation and potential price floors before the next wave of institutional capital can be expected to enter the market.

Source: Spot Bitcoin ETFs Shed $1.62B in Four-Day Negative Streak