Bitcoin ETFs See Record $1B Outflow Amid Market Rout

U.S.-based spot Bitcoin exchange-traded funds (ETFs) experienced their largest-ever daily outflow on Tuesday, with investors withdrawing a combined $1.01 billion. This marks the sixth consecutive trading day of outflows for these funds, as investor sentiment turned sour following a market bloodbath and increasing macroeconomic concerns.

The Fidelity Wise Origin Bitcoin Fund (FBTC) led the exodus with $345 million in outflows, followed by $164.3 million from BlackRock’s iShares Bitcoin Trust (IBIT). Valkyrie’s BRRR and Bitwise’s BITB saw outflows of $100 million and $88.3 million, respectively. Franklin Templeton’s EZBC logged outflows of $74 million, while Grayscale’s GBTC and Invesco’s BTCO saw outflows of $66 million and $62 million, respectively.

The recent intense selling surpassed the previous record-high outflow on Dec. 19, when spot BTC ETFs saw $671.9 million in withdrawals following a significant price drop in Bitcoin. On Tuesday, Bitcoin touched a low of $86,000, its lowest level since November, and remains down 7% over the past week. Ethereum (ETH) and other major altcoins also suffered steep price declines, with the global crypto market capitalization declining 2.9% over the last 24 hours.

The Crypto Fear and Greed Index, a measure of traders’ sentiment, has dropped to 21, remaining in the “extreme fear” zone. Despite the recent downturn, ETF Store President Nate Geraci remains optimistic about the future of Bitcoin and crypto, stating that “no matter how big drawdowns are, it’s not going away.”