Bitcoin ETFs Witness $582M in Net Outflows, the Second-Largest Ever Recorded

On Wednesday, a significant wave of withdrawals hit U.S.-listed bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs), as growing macroeconomic uncertainties placed downward pressure on cryptocurrency prices.

A total of $582 million was pulled from eleven bitcoin ETFs, marking the second-largest outflow since the funds were launched a year ago, according to data from SoSoValue. The withdrawal amount nearly matched the previous record of $680 million from December 19. Fidelity’s FBTC experienced the largest outflow, losing $258 million, while BlackRock’s IBIT followed with $124 million in withdrawals.

Ether ETFs weren’t spared, suffering $159.3 million in outflows, which is the biggest since July 26, when withdrawals reached $162 million.

The large withdrawals came amid a resurgence of concerns over U.S. inflation, which sparked volatility in the bond markets and affected risk assets. Over the last three days, bitcoin’s price has dropped almost 8.5%, reinforcing the struggle to sustain prices above the $100,000 mark.

Minutes from the Federal Reserve’s December meeting, released on Wednesday, revealed that officials believed the pace of monetary easing might need to slow, and they raised concerns over inflationary pressures from incoming President Donald Trump’s policies.

Despite the volatility, some analysts are still optimistic about the outlook for cryptocurrencies. They are particularly focused on Friday’s U.S. nonfarm payrolls report for further clues on the economy’s health.

“The upcoming jobs report is key for investors, as it will provide vital information on the U.S. economy,” said Valentin Fournier, an analyst at BRN. “We expect limited volatility going into the weekend and recommend keeping substantial exposure to digital assets, with a preference for Bitcoin over Ethereum.”