Bitcoin ETFs Plunge 800 Million in Outflows as Institutional Investors Flee

Bitcoin ETFs have experienced significant net outflows over the past four weeks, with institutional investors withdrawing nearly $800 million this week alone. This trend marks the fourth consecutive week of outflows, totaling over $4.5 billion in net assets exiting the market. The outflows occurred despite high expectations surrounding the White House Crypto Summit, indicating that institutional sentiment remains cautious.

Data from various sources shows that US Bitcoin ETFs faced total net outflows of $799.39 million this week, following five consecutive days of negative flows. The largest single-day outflow occurred on Friday, with $409 million withdrawn from Bitcoin ETFs. The largest contributors to Friday’s outflows were Ark Invests’ ARKB and Fidelity’s FBTC ETF instruments, which posted $160 million and $154.9 million in negative flows, respectively. BlackRock’s IBIT and Grayscale’s GBTC followed with $39.9 million and $36.5 million in outflows. Meanwhile, other issuers, except for Bitwise (BITB), recorded zero flows.

Ethereum ETFs also continued their negative trend, logging a second consecutive week of net outflows. These outflows occurred despite anticipation that the White House Crypto Summit would be a bullish event. The outflows suggest that macroeconomic concerns and strategic market positioning have overshadowed the event’s impact. Some analysts point to persistent fears over trade tariffs and broader economic instability, which have soured institutional confidence. Industry experts have highlighted structural shifts in the market as a possible explanation for the ongoing capital flight.

Kyle Chasse recently explained that hedge funds have been exploiting a low-risk arbitrage trade between Bitcoin spot ETFs and CME futures. However, as these trades collapse, liquidity is withdrawn from the market, influencing sell-offs and outflows from crypto investment products. A recent report from QCP Capital provided additional insight into the market reaction. The firm noted that while the White House Crypto Summit was initially expected to be a key bullish catalyst, the signing of an executive order establishing the Strategic Bitcoin Reserve and US Digital Asset Stockpile led to a sharp drop in Bitcoin’s price from $90,000 to $85,000. This “sell the news” event caught market participants off guard, leading to a sharp sell-off. The report suggested that the knee-jer