Bitcoin

U.S. spot Bitcoin exchange-traded funds (ETFs) recorded heavy outflows on Thursday, with investors pulling out $536.4 million—the largest single-day withdrawal since August 1, according to data from SoSoValue.

Out of the 12 listed Bitcoin ETFs, eight funds experienced capital outflows. The biggest outflow came from Ark Invest and 21Shares’ ARKB, which lost $275.15 million, followed by Fidelity’s FBTC with $132 million. Funds operated by BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie also reported smaller outflows.

Meanwhile, spot Ethereum ETFs also turned negative, with a $56.9 million net outflow on Thursday—reversing the inflows seen earlier in the week.

According to Nick Ruck, Director at LVRG Research, the large outflows reflect a rise in investor caution.

“The $536 million withdrawal shows a sharp shift toward risk aversion,” he said. “This likely stems from ongoing macroeconomic pressures, changing U.S. tariff policies, and the recent wave of crypto market liquidations.”

These outflows come right after a major crypto market sell-off, which erased more than $20 billion in leveraged positions and affected over 1.5 million traders. U.S. President Donald Trump’s new 100% tariffs on Chinese imports largely triggered the sell-off and unsettled both traditional and crypto markets.

The $19 Billion Crypto Crash That Shook the Market

U.S.-China trade tensions continue to escalate, making crypto investors susceptible to economic headlines and causing short-term volatility in digital assets.

Analysts Warn of Short-Term Fragility, but See Hope for Stability Ahead

According to Nick Ruck of LVRG Research, the recent wave of ETF outflows highlights growing fragility in the crypto market, suggesting that prices could face additional downward pressure in the near term.

Meanwhile, Justin d’Anethan, Head of Research at Arctic Digital, believes the market is attempting to find its footing despite ongoing challenges.

“I think we’re seeing a market that wants to stabilize,” he said. “But it’s still caught between two opposing forces—geopolitical uncertainty and the lingering impact of restrictive monetary policy that hasn’t fully shifted yet.”

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Crypto prices continued to slide on Friday. Bitcoin fell 2.36% to $108,360, while Ether dropped 2.56% to $3,900, according to data from The Block.

Even so, d’Anethan maintained a cautiously positive outlook.

“Looking ahead, there are still reasons for optimism,” he added. “Inflation pressures are easing, and central banks are getting closer to a policy pivot. But until we see clearer signals from CPI data, policy statements, or diplomatic progress, we should expect volatility to remain high.”