U.S. spot Bitcoin exchange-traded funds (ETFs) recorded over half a billion dollars in net outflows on Monday, marking the fifth-largest withdrawal since their debut in January 2024.
Fidelity, BlackRock Lead Outflows
According to data compiled by The Block, the total net outflows for spot Bitcoin ETFs hit $516.4 million, with figures for Ark Invest’s ARKB ETF still pending. Leading the redemptions were:
- Fidelity’s FBTC: $247 million outflow
- BlackRock’s IBIT: $158.6 million outflow
- Grayscale’s GBTC: $59.5 million outflow
This five-day streak of BTC ETF net outflows now totals $1.07 billion, making it the longest sustained period of redemptions since launch. The largest daily outflows to date occurred on Dec. 19, 2024, when $671.9 million exited the funds following Bitcoin’s correction from an all-time high of $108,000.
Meanwhile, Ethereum ETFs also faced $78 million in net outflows on Monday, with BlackRock’s ETHA leading the decline. The three-day streak of Ethereum ETF redemptions now totals $100 million.
Analysts: Market Needs Fresh Demand for Reversal
BRN analyst Valentin Fournier suggested that the initial wave of crypto ETF investors may now be fully allocated.
“The outflow streak continues across crypto ETFs, marking the longest period of sustained redemptions since their launch. Moving forward, ETFs will need fresh demand or a broader market catalyst to reignite inflows,” Fournier said.
Despite recent outflows, total cumulative net inflows into Bitcoin ETFs still exceed $39 billion, with $111 billion in total assets under management (AUM). Trading volume for Bitcoin ETFs rose slightly to $3.8 billion on Monday but remains well below the January 23 peak of $9.5 billion and March 5 all-time high of $9.9 billion.
Bitcoin Opportunity Fund Co-Managing Partner David Foley downplayed concerns over ETF outflows, noting that the market is in a natural cooling-off phase.
Crypto Market Sell-Off Continues
Bitcoin’s ETF outflows coincide with a broader crypto market downturn, with BTC falling 7.6% to $88,547 over the past 24 hours. Ethereum (ETH) dropped 11.2% to $2,394, while Solana (SOL) and XRP suffered steeper losses, down 14.4% and 13%, respectively.
The GMCI 30 Index, which tracks the top 30 cryptocurrencies, plunged 11% in the last 24 hours to 147.51.
Market analysts attribute the downturn to a series of negative catalysts, including:
- The LIBRA scam and the Bybit hack, both weighing on investor confidence.
- Concerns over a slowdown in U.S. economic growth, with U.S. Services PMI hitting a 22-month low.
- Geopolitical risks, including the Russia-Ukraine war and tariff tensions.
Despite these challenges, analysts see long-term opportunities in the crypto market.
“Bitcoin remains resilient, holding up as well as the Nasdaq despite negative news. Solana, in particular, stands out as a high-upside play, with potential for outsized gains on the next rebound,” Fournier said.
As crypto markets navigate this volatile phase, investors are watching closely for signs of renewed institutional demand or macroeconomic stability to fuel the next leg of growth.
