Key Takeaways
- • U.S. spot Bitcoin ETFs recorded $635.6 million in net outflows on Thursday, reversing Wednesday's net inflows and marking the largest daily outflow since June, according to The Block.
- • BlackRock's IBIT led outflows with $254.1 million, followed by Fidelity's FBTC at $217.5 million and Ark Invest/21Shares' ARKB at $109.4 million.
- • Despite Thursday's reversal, Bitcoin ETFs remain net positive for the week at $442.7 million, and cumulative net inflows since the January 2024 launch exceed $57 billion with more than $100 billion in AUM.
- • U.S. spot Ethereum ETFs saw $110.6 million in net outflows on Thursday, while Solana and Hyperliquid ETFs also posted outflows and XRP funds added $3.6 million.
- • Bitcoin fell to around $81,500 on Friday, down 3.4% in 24 hours, as a tech-led equity sell-off spread and at least $440 million in leveraged crypto positions were liquidated.
Summary
Despite the single-day reversal, weekly Bitcoin ETF flows remain positive at $442.7 million, following inflows of $526.7 million on Monday, $23.2 million on Tuesday, and $528.4 million on Wednesday. Morgan Stanley's Bitcoin ETF, launched in April of this year, has recorded just one day of net outflows to date. Since the first Bitcoin ETFs launched in January 2024, the funds have generated more than $57 billion in combined net inflows and hold over $100 billion in assets under management, per The Block's ETF Tracker.
Ethereum ETFs also returned to net outflows on Thursday, with $110.6 million leaving the funds after $14.9 million of inflows the prior day. Solana and Hyperliquid ETFs also recorded outflows, while XRP funds were the only gainers, adding $3.6 million.
Before the reversal, Lorris Beziers, senior DeFi analyst at Tesseract Group, had cited the earlier inflows as evidence of continued ETF demand despite broader market weakness. He told The Block that the next test was whether inflows persisted while bitcoin held the $80,000 to $81,000 range. "If inflows fade and that floor breaks, the demand picture has weakened," Beziers said.
Bitcoin slid to around $81,500 on Friday, down 3.4% over the prior day, as a Wall Street sell-off extended to Asian equities amid weak tech earnings, concerns over AI spending and escalating geopolitical tensions. The Nasdaq Composite closed down 2.6% on Thursday, its worst session since June, and the S&P 500 fell 1.2%, its worst daily performance since July. CoinGlass data showed at least $440 million in leveraged crypto positions liquidated over 24 hours, including $397 million in longs.
Jeff Anderson, head of U.S. at STS Digital, told The Block that bitcoin remains closely tied to technology stocks, with concerns over AI valuations and debt weighing on the market. "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 said. Derive founder and CEO Nick Forster, a former Susquehanna options trader, said the platform's implied probability of bitcoin exceeding $100,000 by Christmas rose from 9.7% to 12% over the past week, while the probability of a drop below $70,000 fell 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.
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