Bitcoin ETF Outflows Top $1.22B as Price Drops to Four-Month Low
Bitcoin ETF outflows surged to $1.22 billion last week, led by BlackRock’s IBIT ($268.6 million), Fidelity’s FBTC ($67.2 million) and Grayscale’s GBTC ($25 million). The heavy withdrawals coincided with Bitcoin’s slide of over $10,000 to a four-month low near $104,000, underscoring growing market volatility and institutional sentiment shifts. Despite this, Charles Schwab reports clients now hold 20% of all US crypto ETP assets and sees a 90% year-on-year surge in platform traffic. Schwab currently offers Bitcoin ETFs and futures and plans to launch spot crypto trading by 2026. Analysts point to historical October rebounds and potential Fed rate cuts later this year as catalysts that could rekindle demand for Bitcoin and other risk assets.
Bearish
The $1.22 billion outflow from Bitcoin ETFs amid a sharp price drop to a four-month low indicates significant selling pressure and waning institutional demand in the near term. Large redemptions by top funds (IBIT, FBTC, GBTC) heighten volatility and signal bearish sentiment. While potential catalysts like historical October rebounds and Fed rate cuts could spur a medium-term recovery, the current trend points to continued downside risk for Bitcoin until clear signs of renewed inflows emerge.