Bitcoin ETF outflows reach record nine-day streak as investors pull $2.8 billion
The longest run of withdrawals since U.S. spot bitcoin ETFs listed in January 2024 comes as bitcoin underperforms high-flying AI and semiconductor stocks.
What to know:
- U.S. spot bitcoin ETFs have recorded nine consecutive trading days of net outflows. The longest withdrawal streak since the funds began trading in January 2024.
- The ETFs have shed approximately $1.3 billion this week, extending a run of three consecutive weeks of net outflows
- Previous periods of sustained ETF selling, particularly when viewed through Glassnode’s 14-day moving average of flows, have often coincided with local bitcoin bottoms
U.S. spot bitcoin ETFs have shed approximately $1.3 billion this week, extending a run of three consecutive weeks of net outflows, according to data tracked by SoSoValue. Monthly withdrawals now stand at roughly $2.3 billion.
The outflows have coincided with a sharp decline in bitcoin, which has fallen from roughly $80,000 to $73,000 over the period. However, the broader backdrop extends beyond bitcoin’s own price action. Since the start of the year, bitcoin has lagged many of the market’s best-performing assets, particularly AI-related equities, semiconductor and memory-chip stocks, which have continued to attract capital amid growing enthusiasm around AI infrastructure spending.
Signs of institutional selling have also emerged beneath the surface. BlackRock’s iShares Bitcoin Trust (IBIT) recorded its largest single-day outflow since launch earlier this week, driven largely by a sizeable dark pool transaction. While the precise motivation behind the trade is unknown, the scale of the redemption suggests some investors may be reallocating capital away from bitcoin exposure and toward sectors that have recently generated stronger returns.
Sustained ETF outflows have often historically coincided with periods of market stress that later developed into local bottoms. Glassnode data shows that the 14-day moving average of ETF flows tends to trough near significant turning points. Similar patterns emerged during the correction in early February, when bitcoin briefly fell toward $60,000, and again in November, when ETF outflows accelerated around bitcoin’s post-all-time-high pullback and local low near $85,000.
