US spot Bitcoin exchange-traded funds recorded another day of heavy withdrawals on Wednesday, as falling cryptocurrency prices and broader risk-off sentiment continued to weigh on investor confidence.
According to data from SoSoValue, investors pulled $544.94 million from US spot Bitcoin ETFs during the session, marking the second consecutive day of net outflows.
The latest withdrawals followed $272 million in redemptions on Tuesday, bringing the two-day total to $816.96 million.
The renewed selling pressure came as Bitcoin extended its recent decline, underscoring the fragile mood across digital asset markets.
BlackRock, Fidelity, Grayscale lead outflows
Products managed by major asset managers accounted for most of Wednesday’s withdrawals.
BlackRock’s iShares Bitcoin Trust, known as IBIT, led the day’s outflows, with $373.44 million exiting the fund.
Fidelity’s FBTC followed with outflows of $86.44 million, while Grayscale’s GBTC saw $41.77 million in redemptions.
Funds managed by Ark & 21Shares, VanEck and Franklin Templeton also reported net outflows during the session.
The withdrawals came only days after a brief rebound in flows. On Monday, spot Bitcoin ETFs attracted $562 million in net inflows, their strongest single-day intake since mid-January.
The largest inflow of the year remains $843.62 million, recorded on January 14.
Bitcoin hits lowest level since 2024
The outflow pressure coincided with a sharp decline in Bitcoin prices.
The world’s largest cryptocurrency fell below $70,000 late on Wednesday, touching its lowest level since October 2024.
The move reflected broader risk aversion across global financial markets, as investors reduced exposure to higher-volatility assets.
Analysts said the combination of equity market weakness, geopolitical uncertainty and tightening financial conditions has contributed to renewed pressure on digital assets.
Despite a modest recovery earlier in the week, Bitcoin has struggled to regain momentum, leaving ETF investors exposed to further downside.
Long-term footprint remains sizable
Even with the latest withdrawals, spot Bitcoin ETFs continue to represent a significant presence in the crypto market.
Since their launch two years ago, the funds have accumulated $54.75 billion in total net inflows.
Their combined net assets now account for about 6.36% of Bitcoin’s total market capitalisation, highlighting the role institutional products continue to play in shaping market dynamics.
Cumulative net inflows currently stand at around $54.8 billion, roughly 13% below the peak level of $62.9 billion recorded in October last year.
“That’s not too shabby considering these funds took in around $63 billion at their peak,” James Seyffart, an ETF analyst at Bloomberg, wrote in a post on X on Wednesday.
Pressure spreads to other crypto ETFs
Outflows were not limited to Bitcoin products.
US spot Ethereum ETFs recorded $79.48 million in net withdrawals on Wednesday, with activity concentrated in two funds.
BlackRock’s iShares Ethereum Trust saw $58.95 million leave the product, while Fidelity’s Ethereum Fund reported $20.53 million in outflows.
Other Ethereum ETFs posted flat flows.
By contrast, US spot XRP ETFs attracted $4.83 million in net inflows, with Franklin Templeton’s XRP Fund accounting for more than half of the total.
Spot Solana ETFs, however, posted net outflows exceeding $6 million.
The post BTC ETFs see over $500M in outflows as Bitcoin struggles to stay above $71K appeared first on Invezz
