Bitcoin ETFs Face Record $935M Outflow Amid Crypto Sell-Off

Bitcoin ETFs experienced a record $935 million net outflow on Tuesday, as investors turned risk-averse amid growing macroeconomic concerns and a sharp crypto market sell-off. This marked the sixth consecutive day of outflows for the ETF group, which had seen $539 million withdrawn on Monday.

The massive withdrawal came as Bitcoin's price fell to its lowest level since November, trading at around $88,000, down 7% over the past week. The total crypto market cap declined 3.5% over the past 24 hours, with altcoins struggling to recover from their earlier losses.

Fidelity's FBTC led the exodus with around $344 million in outflows, followed by BlackRock's IBIT with almost $162 million in redemptions. Bitwise's BITB and Grayscale's BTC each recorded over $85 million in net outflows. Franklin Templeton's EZBC lost $74 million, with Grayscale's GBTC and Invesco's BTCO declining by $66 million and $62 million respectively. Competing funds managed by Valkyrie, WisdomTree, and VanEck also reported net outflows.

The intense outflows eclipsed the previous record set on Dec. 19, when the group of spot Bitcoin ETFs saw nearly $672 million in withdrawals after Bitcoin sank below $97,000. The withdrawals surpassed the previous record of $672 million set on December 19.

Investors retreated from risk assets in dealing with growing macroeconomic concerns after President Trump's tariff threats. The crypto market sell-off was accompanied by a broader market downturn, with stocks and other risk assets also under pressure.

The record outflows from Bitcoin ETFs highlight the volatile nature of the crypto market and the sensitivity of investors to macroeconomic developments. As the global economy faces uncertainty, investors may continue to seek safer assets, potentially leading to further outflows from crypto-related investments.