U.S. Bitcoin ETFs Record $536 Million in Outflows, Largest Since August

U.S. spot Bitcoin exchange-traded funds (ETFs) saw a combined $536.4 million in net outflows on Thursday, marking the largest single-day withdrawal since August 1. Data from SoSoValue shows that eight of the twelve Bitcoin ETFs recorded outflows, led by Ark & 21Shares’ ARKB, which lost $275.15 million. Fidelity’s FBTC followed with $132 million in outflows, while funds from BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie also reported declines.

Ethereum ETFs Reverse Course

Spot Ethereum ETFs also experienced weakness, posting $56.9 million in net outflows after two consecutive sessions of positive inflows earlier this week.

Investor Caution and Market Stress

“The $536 million in net outflows primarily reflects a sharp surge in investor risk aversion,” said Nick Ruck, Director at LVRG Research. He attributed the trend to growing macroeconomic uncertainty, particularly evolving U.S. tariff policies and a broader market deleveraging event that triggered mass liquidations across crypto assets.

Tariffs and Liquidations Hit the Market

Outflows have persisted since last Friday, coinciding with a historic crypto liquidation event that erased over $20 billion in leveraged positions and affected more than 1.5 million traders. The selloff followed President Donald Trump’s announcement of 100% tariffs on Chinese imports, which rattled risk markets and reignited U.S.-China trade tensions.

Signs of Fragility and Potential Downside

Ruck noted that ETF outflows indicate “increased market fragility” in the short term, warning that prices could face additional downward pressure if volatility continues.

Analysts Expect Stabilization, but Volatility Remains

“I believe we’re witnessing a market that wants to stabilize,” said Justin d’Anethan, Head of Research at Arctic Digital. “It’s still grappling with two unresolved forces — uncertainty around the geopolitical path and the lingering pressure of restrictive monetary policy that hasn’t quite flipped yet.”

According to data from The Block, Bitcoin fell 2.36% to $108,360 over the past 24 hours, while Ether declined 2.56% to $3,900.

Outlook: Waiting for Clarity

Despite the recent weakness, d’Anethan sees reasons for cautious optimism. “Structurally, the inflation story is softening, and central banks are nearing their pivot point,” he said. “But until we get clearer confirmation from CPI data, policy statements, or diplomatic progress, volatility will likely remain elevated.”