Bitcoin ETFs Bleed $817 Million as Crypto Plunges to Nine-Month Low
U.S. spot Bitcoin exchange-traded funds (ETFs) witnessed a staggering net outflow of $817 million on Thursday, mirroring a sharp decline that pushed Bitcoin to its lowest price point since April 2025.
Data from SoSoValue reveals the sell-off was spearheaded by BlackRock's IBIT, which saw $317.81 million in redemptions—a figure exceeding the combined outflows from Fidelity's FBTC ($168.05M) and Grayscale's GBTC ($119.44M). The aggressive exodus underscores a rapid shift in investor sentiment following a cascade of negative catalysts.
The downturn was triggered by a confluence of macroeconomic anxieties and disappointing corporate news. Speculation over a potential shift in Federal Reserve leadership, with former governor Kevin Warsh emerging as a front-runner, has injected volatility into markets. This uncertainty was compounded by a spillover from equity markets, where Microsoft's cautious financial guidance for 2026 dampened risk appetite.
"A series of negative catalysts finally pushed Bitcoin to break its multi-week trading range to the downside," Aurelie Barthere, Principal Research Analyst at Nansen, told Decrypt. "Bitcoin sold off in tandem with equities following the market's disappointment in key tech earnings."
The changing macro landscape is fundamentally impacting the trading strategies that have supported ETF volumes. "From a capital structure perspective, Bitcoin spot ETFs function as a critical channel for leveraged capital to engage in arbitrage," explained Tim Sun, a senior researcher at HashKey Group. "This capital is exceptionally sensitive to shifts in liquidity and the interest rate outlook. As investors de-risk, they are rotating out of high-volatility assets like Bitcoin."
This rotation has amplified ETF outflows and stifled Bitcoin's recovery. The sentiment shift is starkly visible on prediction markets, where the probability of Bitcoin reaching $100,000 has plummeted from 70% to 49% in a single day.
Other geopolitical tensions, including concerns over oil tariffs and South China Sea frictions, added to the cautious backdrop. Bitcoin is currently trading around $82,687, down nearly 6% in 24 hours, as the market braces for an official White House announcement on the Fed Chair nomination.
Market Reactions: Voices from the Community
David Chen, Portfolio Manager at a Macro Hedge Fund: "This is a classic risk-off move. The correlation with equities is back, and Bitcoin is being treated as a risk asset, not a digital gold—at least for now. The ETF outflows reflect institutional repositioning ahead of potential policy shifts."
Maya Rodriguez, Retail Investor & Crypto Enthusiast: "It's incredibly frustrating. Every time we get mainstream adoption via ETFs, the traditional financial world's problems become our problems. We're supposed to be the alternative, but now we're tanking because of Microsoft's guidance? The whole point is being eroded."
Professor Arjun Mehta, Financial Technology Lecturer: "The data shows a maturation, albeit a painful one. The basis trade unwinding indicates that sophisticated capital is driving price discovery. Short-term volatility is the price of deeper, more integrated markets. This is a stress test, not a failure."
Sarah Lin, Independent Market Analyst: "The sheer scale of the IBIT outflow is alarming. It suggests the recent inflows weren't just 'hodlers' but fast money. The market is repricing the entire macro scenario, and crypto is first in line for the sell-off. Until the Fed picture clears, the pressure will remain."