Spot Bitcoin ETFs recorded their largest daily outflows in two weeks, as the Federal Reserve’s rate cut and renewed U.S.–China trade discussions triggered market volatility.
Bitcoin ETFs Face Heavy Withdrawals Amid Market Uncertainty
U.S.-listed spot Bitcoin ETFs saw $470 million in outflows on Wednesday, marking their largest single-day withdrawal in two weeks, according to data from Farside Investors. The pullback came as Bitcoin briefly dropped to $108,000 before recovering later in the day.
Fidelity’s FBTC led the outflows with $164 million, followed by ARK Invest’s ARKB, which recorded $143 million, and BlackRock’s IBIT with $88 million. Grayscale’s GBTC saw $65 million in redemptions, while Bitwise’s BITB reported a modest $6 million loss.
These outflows follow consecutive days of inflows, with $149 million entering the market on Monday and over $202 million on Tuesday. The net cumulative inflows now stand at $61 billion, while total Bitcoin ETF assets under management have fallen to $149 billion, representing 6.75% of Bitcoin’s total market capitalization, according to SoSoValue.
Fed’s Rate Cut and Trade Talks Weigh on Bitcoin Price
Bitcoin’s price has fluctuated between $108,201 and $113,567 over the past 24 hours, reflecting a mixed market reaction. The U.S. Federal Reserve’s 25-basis-point rate cut was expected to support risk assets, yet Bitcoin initially declined before rebounding following news of a meeting between President Donald Trump and China’s Xi Jinping, where both leaders discussed easing trade tensions.
Analysts note that such macroeconomic developments often drive short-term volatility in crypto markets. However, they also point out that institutional investors tend to rebalance ETF positions during periods of rate policy adjustments, which may explain the temporary withdrawals.
ETFs Still Hold a Significant Share of Bitcoin Supply
Despite the recent sell-off, Bitcoin ETFs continue to control more than 1.5 million BTC, valued at approximately $169 billion, or 7.3% of the total circulating supply, according to Bitbo data.
BlackRock’s IBIT remains the largest holder with 805,239 BTC, followed by Fidelity’s ETF with 206,258 BTC, and Grayscale’s GBTC with 172,122 BTC.
Market sentiment remains cautiously optimistic. MicroStrategy chairman Michael Saylor reaffirmed his bullish stance earlier this week, predicting that “Bitcoin could still reach $150,000 by the end of 2025”, citing increasing institutional participation and global demand.
While short-term ETF outflows suggest investor hesitation, the broader trend points to strong long-term accumulation, as Bitcoin continues to mature within traditional financial markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.