Bitcoin ETFs Face Historic Sell-Off—$938M Pulled in a Day

Bitcoin’s drop below $89,000 seems to be the driving force behind the latest wave of outflows, with the price still hovering at this level. Fidelity’s Spot Bitcoin ETF (FBTC) suffered the steepest losses, bleeding $344.7 million, while BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw $164.4 million withdrawn. Meanwhile, VanEck’s Bitcoin Trust ETF (HODL) was hit the least, with a modest $10 million in net outflows.

In total, Bitcoin ETFs have shed over $1.8 billion in just six consecutive trading days. FBTC alone lost more than $700 million, while IBIT faced over $400 million in withdrawals. Since the start of the month, total net outflows have climbed to roughly $2.4 billion—though this represents only about 2% of the entire Bitcoin ETF market capitalization.

Nate Geraci, President of ETF Store, believes institutional investors are still wary of crypto, making it unlikely that Bitcoin’s rollercoaster volatility and ETF sell-offs will ease anytime soon. BitMEX co-founder Arthur Hayes added fuel to the fire, pointing out that these massive outflows coincided with a wave of futures liquidations on the Chicago Mercantile Exchange (CME).

Meanwhile, Markus Thielen, Head of Research at 10x Research, has argued that Bitcoin ETFs are mostly a playground for arbitrage traders, not long-term investors. By exploiting spreads and funding rates, these traders lock in predictable profits, regardless of whether Bitcoin’s price is soaring or crashing.