Bitcoin ETFs Face Record Outflows Exceeding $978 Million

TLDR

• Bitcoin ETFs saw $978 million in outflows recently.
• BlackRock's IBIT had a $103 million daily outflow.
• Ethereum ETFs reported $75.4 million in net outflows.

The recent outflow of funds from Bitcoin Exchange Traded Funds (ETFs) has surpassed $978 million, marking a significant withdrawal in the U.S. market. This development comes as U.S. investors account for 93% of the broader crypto fund outflows, totaling $6.4 billion over five weeks.

Bitcoin remains the most affected asset in this trend. Notably, key ETFs like BlackRock's IBIT experienced a daily outflow of $103 million, while Fidelity's FBTC saw a reduction of $45 million. Several Grayscale products also reported notable outflows.

Major Institutional Players Affected

Key institutional players managing these ETFs include BlackRock, with an Assets Under Management (AUM) of $69.10 billion, and Fidelity, holding an AUM of $17.05 billion. Despite significant outflows, Bitcoin products had seen strong inflows of $18.5 billion over the past year.

The trend of outflows also extends to other assets such as the iShares Ethereum Trust, which holds $10.22 billion AUM and reported $59 million in outflows. Grayscale’s products like ETHE and GSOL similarly contribute to this continuing trend.

Pressure on Bitcoin and Ethereum

Bitcoin, the principal asset facing pressure from ETF outflows, has seen prices revert to April 2025 levels. Ethereum is experiencing similar trends with net outflows totaling $75.4 million from spot ETH ETFs over seven days and $64 million in daily outflows across various products.

Other notable occurrences include a decline in the stablecoin sector, with $823 million in outflows, while BlackRock BUIDL saw a fall from top spots. Additionally, whale activity has shown mixed impacts, such as one whale purchasing 2,509 BTC and withdrawing $221 million BTC from FalconX.

Crypto Experts and Market Forecasts

"Altcoin season is continuing to thrive, according to Arthur Hayes, who advises focusing on current trends rather than historical patterns."

Arthur Hayes, Co-founder, BitMEX

Market experts have offered various perspectives on these developments. Arthur Hayes comments on the ongoing resilience of altcoin season. Additionally, Tom Lee from Fundstrat has cautioned clients about potential drops in Bitcoin's price to $60,000 by early 2026.

While Bitcoin and Ethereum see declines, other cryptocurrencies and tokens like XRP are defying these trends. SEI derivatives volumes have surged, and there have been updates in SHIB accounts.

Lack of Primary Exchange Data

Despite significant ETF outflows and related activities, primary on-chain data like Total Value Locked (TVL) changes, liquidity shifts, or staking flows have not been observed from leading exchanges.

Platforms such as KuCoin have noted ETF outflows; however, no essential wallet metrics have been reported to provide further clarity on this financial shift.