US spot Bitcoin exchange-traded funds recorded their biggest daily withdrawals since June on Thursday, with $635.6 million leaving the products and wiping out the previous day’s net inflows.
BlackRock’s IBIT saw the largest outflow at $254.1 million, followed by Fidelity’s FBTC at $217.5 million and Ark Invest/21Shares’ ARKB at $109.4 million, according to data compiled by The Block.
Bitwise’s BITB and Grayscale’s GBTC also recorded net outflows. Morgan Stanley’s MSBT was the only fund to move against the wider trend, attracting $2.3 million, while the remaining ETFs reported no flows.
Morgan Stanley’s Bitcoin ETF launched in April this year and has recorded only one day of net outflows so far.
Despite Thursday’s reversal, Bitcoin ETF flows remain positive for the week, with total net inflows of $442.7 million. The funds attracted $526.7 million on Monday, $23.2 million on Tuesday and $528.4 million on Wednesday.
Before Thursday’s withdrawals, Lorris Beziers, senior DeFi analyst at Tesseract Group, had described the earlier inflows as evidence of continued ETF demand despite weakness across wider markets.
Beziers told The Block that the next test would be whether inflows continued while Bitcoin traded between $80,000 and $81,000.
“If inflows fade and that floor breaks, the demand picture has weakened,” he said.
Since the Bitcoin ETFs launched in January 2024, they have attracted more than $57 billion in combined net inflows and amassed more than $100 billion in assets under management, according to The Block’s ETF Tracker.
US spot Ethereum ETFs also returned to net outflows on Thursday, with $110.6 million withdrawn after $14.9 million entered the funds the previous day. Solana and Hyperliquid ETFs also posted net outflows, while XRP funds recorded net inflows of $3.6 million.
Bitcoin falls as technology stocks come under pressure
Bitcoin fell back to about $81,500 on Friday, down 3.4% over the previous 24 hours, as a sell-off in US technology stocks spread to Asian equities. Weak technology earnings, concerns about AI spending and rising geopolitical tensions added to pressure on markets.
The Nasdaq Composite fell 2.6% on Thursday, its worst session since June. The S&P 500 dropped 1.2%, recording its poorest daily performance since July.
At least $440 million in leveraged crypto positions were liquidated during the previous 24 hours, including $397 million in long positions, according to CoinGlass.
Jeff Anderson, head of US at STS Digital, said Bitcoin remained closely linked to technology stocks as investors assessed AI valuations and debt concerns.
“We do not read a lot into this move, with $80K/$86K being the recent channel as we watch for a breakout of those levels,” Anderson told The Block.
Nick Forster, founder and chief executive of Derive and a former Susquehanna options trader, said the platform’s implied probability of Bitcoin exceeding $100,000 by Christmas had risen from 9.7% to 12% over the past week. The probability of Bitcoin falling below $70,000 declined from 15.6% to 11%.
“What they show is that traders have increased their exposure to year-end upside while reducing their spending on crash protection,” Forster said.
