Bitcoin ETF Outflows Extend Into Fourth Day as Macro Headwinds Drag on Crypto and Stocks

Bitcoin ETFs Log $196M in Outflows as Stagflation Fears Mount; Ether Funds Attract Inflows

Spot bitcoin ETFs in the U.S. saw net outflows of $196 million on Tuesday, extending a four-day losing streak driven by growing fears of stagflation. Fidelity’s FBTC and BlackRock’s IBIT accounted for the majority of the redemptions, according to data from SoSoValue.

The recent wave of withdrawals began last Thursday and has now totaled nearly $1.5 billion — the largest sustained outflow since April. The exodus accelerated after U.S. ISM services data signaled weakening economic activity, rising inflation, and supply-side disruptions, sparking concerns about stagflation’s impact on risk assets.

Bitcoin slipped over 1% to $112,650 before recovering slightly to $114,000. U.S. equities also came under pressure, with the Nasdaq shedding 0.7% to reverse Monday’s gains.

“Stagflation is the worst macro setup for risk if it ties the Fed’s hands on rate cuts,” said analysts at LondonCryptoClub, citing contracting services employment and rising input costs as evidence of deteriorating economic conditions.

Despite the downturn, rate cut expectations are rising. Markets are now pricing in up to 75 basis points in cumulative cuts by year-end, with potential easing as early as the September FOMC meeting, according to Bloomberg’s SOFR-linked options data.

Ether ETFs See Renewed Interest Amid Regulatory Shift

While bitcoin ETFs struggled, ether-focused products attracted $73.2 million in net inflows, ending a brief two-day decline. The shift followed updated SEC guidance indicating that staking and token rewards — under certain circumstances — do not constitute securities offerings.

“The new guidance removes a major obstacle and clears the way for spot ether ETFs to proceed, even if without staking,” said Nate Geraci, president of NovaDius Wealth Management.

With increased regulatory clarity and rising institutional interest, analysts say ETH ETFs could continue to gain momentum as investor sentiment pivots.