Spot Bitcoin ETFs just experienced their worst day in history with over $1.1 billion withdrawn, amid a backdrop of falling Bitcoin prices and concerns about trade war and macroeconomic instability.

Bitcoin ETFs Lost Over $1.1 Billion In One Day

Last Tuesday marked a record capital outflow from #ETFbitcoin spot Bitcoin ETFs with a total amount of over $1.1 billion, according to data from asset management company Farside Investors (UK). Previously, on Monday, this figure reached $539 million, ranking sixth in the nearly 14-month history of these funds.

📉 Bitcoin prices also plummeted, dropping below $84,000 for the first time since November 2024, recording a 12% decline within a week. Major altcoins like Ethereum ($ETH ), $XRP , and Solana ($SOL ) also experienced double-digit declines in the same period.

According to James Seyffart, an ETF analyst at Bloomberg, while the withdrawal number seems large, it only accounts for about 2.3% of the total assets of Bitcoin ETFs. He believes that this capital withdrawal is normal in a volatile market like crypto.

However, the factors causing the capital outflow could include:

  • The $1.4 billion hack of Bybit exchange, causing panic among investors.

  • Sell-off in risk assets due to concerns about economic recession.

  • The 'basis trade' strategy has been unwound, affecting the cash flow into ETFs.

Capital Outflow Trend: Over $2 Billion Disappeared In February

Not only on Tuesday, Bitcoin ETFs lost over $2 billion just in February, as investors are concerned about:

  • Inflation remains high, affecting investment decisions.

  • Concerns about new tariffs from the Trump administration, which could lead to a trade war.

  • Global geopolitical tensions, undermining confidence in risk assets like crypto.

Despite these pressures, Bitcoin ETFs remain one of the fastest-growing financial products in the industry with a net inflow of up to $40 billion since their launch.

Meanwhile, Ethereum ETFs also recorded a capital outflow of $130 million in the past two days, the highest since January.

Will the Crypto Market Recover?

📢 Geoffrey Kendrick, head of digital asset research at #StandardChartered , believes that the sell-off is not yet over. Previously, he projected Bitcoin would drop to the $80,000 range, and in fact, BTC prices are gradually approaching this level.

Although the market is undergoing a significant correction, new ETF applications are still awaiting approval from the SEC, including funds for XRP, Litecoin, Cardano, Polkadot, and Solana. This shows that investor interest in crypto remains strong, even though the market may still face many fluctuations. #anhbacong