- Bitcoin and Ether ETFs saw over $500 million in outflows in a single day as both cryptocurrencies dropped, with Bitcoin falling below $109,000 and Ether near $3,900.
- Despite the sell-off, ETF development continues, with new approvals and BlackRock attracting significant inflows.
Cryptocurrency exchange-traded funds (ETFs) experienced a dramatic outflow on Thursday, losing over $500 million as Bitcoin and Ether extended their recent slide. Despite the pullback, some experts view the dip as a routine correction rather than a market collapse.
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Bitcoin ETFs See $258 Million Exit
Bitcoin-linked ETFs bore the brunt of Thursday’s sell-off, with $258.4 million withdrawn, pushing weekly outflows above $484 million. This comes as BTC dipped below $109,000, marking its weakest point in nearly a month.
BlackRock’s iShares Bitcoin Trust (IBIT) was the only standout performer, attracting $79 million in inflows. In contrast, major competitors such as Fidelity’s FBTC, Bitwise, ARK 21Shares, Franklin, VanEck, and Grayscale faced heavy withdrawals. Fidelity’s ETF alone saw $114.8 million exit, Bitwise lost $80.5 million, and Ark’s ARKB recorded $63 million in sell-offs.
Despite the recent outflows, Bitcoin ETFs still maintain over $57 billion in cumulative inflows since their inception, reflecting sustained investor confidence in the long term.
Ether ETFs Experience Even Heavier Losses
Ether-linked ETFs fared worse, shedding $251 million in a single day. Weekly outflows now total $547 million, coinciding with ETH dropping 8% to trade near $3,900. From last month’s highs, Ethereum is down roughly 21%, contributing to broader crypto market losses exceeding $140 billion since the start of the week. Leveraged positions also faced liquidation, with more than $1.1 billion unwound, predominantly affecting ETH long bets.
Some analysts, however, consider the correction normal. “A $15,000 pullback in Bitcoin is just 12% from all-time highs. ETH is only down about 10% from peak,” one observer noted. “Whatever you spot buy today will look glorious in six months.”
ETF Expansion Continues Despite Market Slump
Even amid withdrawals, ETF development remains strong. The SEC approved the Hashdex Nasdaq Crypto Index US ETF, while REX-Osprey launched the first Ether staking ETF. Bitwise filed for a Hyperliquid ETF, and BlackRock registered the iShares Bitcoin Premium ETF, a covered-call strategy aimed at generating yield on BTC exposure.
Meanwhile, Ethereum co-founder Jeffrey Wilcke moved $6 million worth of ETH to Kraken, sparking speculation about potential additional sales. Analysts highlight $107,000 as a key liquidity level for Bitcoin, which could determine whether the current downturn is a temporary shakeout or a deeper retracement.
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