Second-Worst Withdrawal Streak Recorded as US Bitcoin ETFs See Over $2 Billion in Outflows

US Bitcoin Spot ETFs Face Significant Withdrawals

In the universe of US spot Bitcoin exchange-traded funds (ETFs), more than $2 billion has been withdrawn in the past week alone. This marked the second-worst week of withdrawal in the ETF’s history, highlighting the variations in cryptocurrency market dynamics. The data suggests that the outflow streak, which started on October 29, has wiped out over $2.04 billion in total.

Bitcoin ETFs Withdrawals in Detail

On a more detailed look into specific days, the heaviest outflow occurred on Tuesday, wherein investors withdrew $566 million from Bitcoin ETFs. This followed by sessions of $470 million, $488 million, and $191 million worth of consecutive removals. This continuous outflow is comparable only to a significant late-February sell-off wherein funds saw a massive $3.2 billion worth of redemptions within a single week. The peak of this sell-off event was recorded on February 25 and 26, with single-day withdrawals reaching $1.11 billion and $757.8 million respectively.

Spot Ether ETFs Under Pressure

Spot Ether ETFs have also borne the brunt of significant selling pressure. On Wednesday alone, these funds recorded net outflows amounting to $118.5 million. Among various issuers, BlackRock’s ETHA led the daily outflows with $146.6 million, whereas Bitwise’s ETHW and VanEck’s ETHV remained relatively stable. The total withdrawal from Ether products by institutional investors has reached nearly $1.2 billion over six consecutive days of redemptions. Despite these outflows, the overall inflows into Ether product remain substantial, with the cumulative total remaining above $13.9 billion.

Solana ETFs Experiencing Growth

Contrary to the recent withdrawal trends seen in Bitcoin and Ether ETFs, Solana’s ETFs have been enjoying a steady inflow, gaining an additional $9.7 million recently. This marked the seventh consecutive day of positive cash inflows for Solana’s ETFs. The total net additions since inception have swelled to $294 million, reflecting the increasing interest of investors in this particular cryptocurrency’s ETF.

Risks Influencing Bitcoin’s Price

Adding to the complex economic panorama, the US Supreme Court has commenced arguments on the use of the International Emergency Economic Powers Act (IEEPA) by former US president Donald Trump, to impose tariffs. Several justices signaled their growing skepticism towards giving broad presidential powers in matters of trade. Potential consequences of a ruling against Trump could include the overall US tariff rate falling to 6.5%, which might reduce the burden on the gross domestic product, but simultaneously deepen fiscal concerns. Analysts have started to factor in judicial risks into macro liquidity expectations, owing to which the dollar has shown short-term strength as the safe-haven demand grows. Meanwhile, Bitcoin’s trade hovers close to its $100,000 mark amid this volatility.