Bitcoin ETFs Shed $1.23B Amid Six-Year Low Exchange Supply
U.S. spot Bitcoin ETFs saw net outflows of $1.23 billion last week. Bitcoin ETFs experienced $366.6 million of redemptions on Friday alone, led by BlackRock’s iShares Bitcoin Trust ($268.6 million), followed by Fidelity ($67.2 million) and Grayscale’s GBTC ($25 million). These withdrawals coincided with a $19 billion liquidation event triggered by U.S. tariff announcements and a Bitcoin price slide from above $115,000 to below $104,000.
On-chain data shows exchange supply at a six-year low, with over 45,000 BTC withdrawn since early October. Glassnode reports illiquid supply fell just 2% in Q3, while liquid supply rose 12%. CryptoQuant data indicates exchange and OTC desk holdings declined from 4.5 million to 3.1 million BTC, signaling ongoing accumulation by long-term holders.
Analysts caution that reclaiming the $108,000–$109,000 zone is key to avoiding a test of $100,000 support and could trigger a move toward $112,000. Meanwhile, institutional adoption remains strong: public companies continue adding Bitcoin to their balance sheets, CME Group plans 24/7 futures trading, and S&P is developing a crypto index. Despite short-term ETF outflows, these factors underpin a broader bullish outlook for Bitcoin.
Bullish
The net outflows from Bitcoin ETFs and the recent liquidation event signal short-term selling pressure and heightened volatility. Technical resistance around the $108,000–$109,000 zone poses a near-term test that could trigger further downside if not reclaimed. However, the six-year low in exchange supply, ongoing BTC accumulation by long-term holders, and strong institutional adoption—evident in corporate balance sheet additions, CME’s 24/7 trading plans, and the S&P crypto index development—support a sustained recovery. These factors combine to create a bullish outlook for Bitcoin over the medium to long term.