Investors Withdraw $1.33B from Bitcoin ETFs as Funds Flow into Precious Metals
Institutional investors have pulled $1.33 billion from U.S. spot Bitcoin ETFs amid a broader crypto sell-off that has erased over $1 trillion in market value after a 35% drawdown. Ethereum ETFs saw $611 million in net outflows, XRP’s spot ETF recorded a first weekly net outflow of $40.6 million, and Solana remained the only token with positive inflows, adding $9.57 million—the weakest on record. Precious metals, led by gold and silver, have absorbed much of the flight-to-safety flows; silver has posted particularly strong gains, adding value roughly equivalent to Bitcoin’s entire market capitalization since October. Despite global liquidity expanding to a record $162 trillion, crypto has decoupled and continued to weaken since mid-November, suggesting capital is rotating into safer assets. The article notes geopolitical tensions and concerns about U.S. dollar purchasing power as drivers of the move. Analysts say a change in macro policy—such as a more dovish Federal Reserve chair—could restore risk appetite, but near-term recovery remains uncertain as institutional conviction appears to be waning across major U.S. spot crypto ETFs.
Bearish
Net withdrawals totaling $1.33B from Bitcoin ETFs, plus sizeable outflows from Ethereum and XRP ETFs, indicate declining institutional appetite for crypto. The persistent selling follows a 35% drawdown and more than $1 trillion wiped from the market—clear contractions in liquidity and sentiment. Concurrent strong inflows into precious metals and a decoupling between record global liquidity and crypto price action point to capital rotation into safer assets. Historically, large ETF outflows and institutional exits coincide with extended bearish periods (e.g., 2018 and 2022 drawdowns). Short-term, expect continued volatility and downward pressure as liquidity thins and selling begets selling. Medium-to-long term, recovery would likely require a shift in macro conditions—improved risk-on sentiment from dovish central bank policy or renewed speculative demand. Until such catalysts materialize, the news strengthens a bearish outlook for crypto markets.