Bitcoin ETFs Encounter $582M Net Outflow, Second-Largest in History

On Wednesday, significant outflows were recorded in U.S.-listed spot bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) as macroeconomic uncertainty weighed heavily on the cryptocurrency market.

A total of $582 million was withdrawn from eleven bitcoin ETFs, marking the second-highest outflow since the products began trading a year ago, according to data from SoSoValue. This outflow fell just short of the $680 million record seen on December 19. Fidelity’s FBTC ETF led the way with $258 million in withdrawals, while BlackRock’s IBIT saw $124 million leave the fund.

Ether ETFs were also not spared, with a collective withdrawal of $159.3 million—the largest since July 26 when $162 million was pulled from these funds.

The outflows occurred in conjunction with renewed concerns about U.S. inflation, which have heightened volatility in the bond market, pushing risk assets lower. Over the past three days, bitcoin’s price has fallen by nearly 8.5%, continuing its struggle to break past the $100,000 mark.

Minutes from the Federal Reserve’s December 18 meeting, released Wednesday, indicated that central bank officials were considering slowing the pace of policy easing. The minutes also noted concerns regarding the inflationary effects of policies under incoming President Donald Trump.

Despite the pullback, some analysts remain hopeful, expecting a potential rebound after Friday’s nonfarm payrolls report.

“The U.S. jobs report on Friday will be closely monitored as it provides key insights into the health of the U.S. economy. We anticipate relatively low volatility going into the weekend and recommend maintaining a substantial position in digital assets, with a particular preference for Bitcoin over Ethereum,” stated Valentin Fournier, an analyst at BRN, in an email.