US Bitcoin ETFs Suffer $1.28 Billion Outflow Amid Market Pullback

Investment vehicles tracking cryptocurrency experienced massive redemptions over the past week as demand cooled. Spot bitcoin etfs in the United States recorded $1.28 billion in net outflows, registering their largest single-week retreat since late June.

The widespread withdrawals pushed the year-to-date net outflow tally for these funds to approximately $919 million, according to data from SoSoValue. This followed a negative performance in October, when the products posted $515 million in net redemptions.

Spot Bitcoin ETFs in the US shed $1.28 billion last week, led by massive outflows from BlackRock's IBIT.

Pressure on Major Bitcoin ETFs

The lion's share of the liquidations came from BlackRock's iShares Bitcoin Trust (IBIT), which ranks as the world's biggest spot Bitcoin exchange-traded fund by asset volume. Farside Investors reported that capital departing IBIT reached $1.21 billion for the week, representing nearly 95% of the total weekly market outflows reported by SoSoValue.

IBIT's redemptions marked six consecutive trading sessions of net outflows through Friday, bringing cumulative withdrawals since Oct. 30 to roughly $1.44 billion. In contrast, Fidelity's Wise Origin Bitcoin Fund (FBTC) recorded roughly $93 million in weekly net inflows, managing a positive overall balance even after absorbing nearly $200 million in outflows on Thursday.

Crypto Market Headwinds and Macro Sentiment

The fund liquidations coincided with a slide in the underlying asset. The price of Bitcoin dropped beneath $76,000 as investors responded to several headwinds, including a $6.3 billion hack at cryptocurrency exchange Binance, general uncertainty following US midterm elections, and a sell-off in technology equities.

According to a statement shared by Bitfire Research with Cointelegraph, shifting market expectations regarding US interest rates, post-midterm political ambiguity, and tech sector weakness weighed heavily across the sector. Bitfire Research noted that participants were also evaluating whether the CLARITY Act could secure congressional approval before the year concludes.

Market sentiment indicators showed deep caution. Bitfire cited a Crypto Fear & Greed Index score of 25 along with a negative Coinbase Premium, demonstrating that Bitcoin traded at a discount on Coinbase against the metric's benchmark. Describing current conditions as a "breakdown and bottom-seeking phase," the research firm highlighted forthcoming US inflation statistics and Federal Reserve communications as key markers. It noted that remaining below the $74,400 to $75,000 range risked further downside. Bitcoin was trading at $74,049, reflecting a 2.3% decline over 24 hours and a 5% drop across seven days according to CoinGecko.

Why it matters

The heavy withdrawals from US spot Bitcoin exchange-traded funds underscore how quickly institutional sentiment can shift during broader risk-off movements in traditional equities and regulatory uncertainty. When major vehicles like BlackRock's IBIT face persistent redemptions, it signals reduced institutional exposure and creates structural selling pressure that tests core market support levels across the global digital asset space.