Bitcoin ETF Sees Unprecedented Nine-Day Outflow of $2.8 Billion

Investors withdraw significant funds as Bitcoin struggles against rising market trends.

U.S. spot Bitcoin ETFs have recorded an unprecedented nine consecutive days of net outflows, totaling approximately $2.8 billion since their launch in January 2024. This marks the longest withdrawal streak observed for these funds.

This week alone, the ETFs have faced withdrawals of around $1.3 billion, extending a trend of net outflows that has persisted for three weeks, leading to a total of about $2.3 billion withdrawn this month.

The outflows coincide with a notable decline in Bitcoin's price, which has dropped from roughly $80,000 to $73,000. This downturn highlights Bitcoin's underperformance relative to other asset classes, particularly AI and semiconductor stocks, which have attracted significant investment due to heightened interest in AI.

Institutional selling appears to be on the rise, as evidenced by BlackRock's iShares Bitcoin Trust (IBIT) experiencing its largest outflow since inception, driven by a significant dark pool transaction. While the motivations behind this trade remain unclear, the scale of the withdrawal suggests a shift in investor focus towards sectors with better returns.

Historically, prolonged ETF outflows have often indicated periods of market stress, which may signal local price bottoms. Data from Glassnode shows that the 14-day moving average of ETF flows typically reaches lows during critical market turning points, a pattern observed during past corrections in February and November.