The U.S. Bitcoin ETF experienced the second-largest single-day outflow in history on Friday, amounting to $812 million, with Fidelity and ARK funds seeing the largest redemptions, while even the usually stable BlackRock experienced slight outflows.
Despite the astonishing outflow, the total trading volume on that day still exceeded $6.1 billion, indicating active market trading and investors actively adjusting their positions.
This outflow of funds is related to the Bitcoin price falling to the support level of $114,000, as institutional investors tend to avoid short-term risks when prices weaken.
Quarter-end portfolio adjustments, macroeconomic uncertainty, and year-end tax planning also contribute to fund flows.
However, overall, the ETF market size remains as high as $146.4 billion, indicating that institutional interest in Bitcoin has not waned.
This large redemption may pave the way for the next round of fund inflows; if the market stabilizes and rebounds in the short term, ETF funds are likely to quickly reverse into net inflows.
