A fresh wave of investor retreat has swept through the U.S. crypto market, with Bitcoin exchange-traded funds suffering their heaviest daily withdrawals in more than two months.
The sell-off, which totaled over $536 million on Thursday, underscores how fragile sentiment has become following a week of chaos across global markets.
Data from Farside Investors shows that eight out of twelve Bitcoin ETFs registered redemptions. The largest exits came from Ark & 21Shares’ ARKB, where investors pulled roughly $275 million, and Fidelity’s FBTC, which saw another $132 million leave its books. Products from BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie all posted smaller outflows.
The wave of withdrawals hit just days after the historic $20 billion liquidation event that wiped out leveraged crypto positions around the world – a shock still rippling through digital markets. That crash was triggered by the White House’s announcement of 100% tariffs on Chinese imports, a policy shift by President Donald Trump that rattled both risk assets and traditional equity markets.
Ethereum funds also took a hit, shedding roughly $57 million in net assets as traders reduced exposure across the board.
Market analysts warn that the ongoing ETF outflows could prolong the current downturn. “The market clearly wants to stabilize,” said Justin d’Anethan, head of research at Arctic Digital, “but it’s being pulled in opposite directions by geopolitics and the still-restrictive stance of central banks.”
Bitcoin has now fallen to around $108,000, while Ether trades near $3,900, extending losses from earlier in the week.
Despite the grim short-term outlook, d’Anethan sees a possible turning point ahead. Cooling inflation and the likelihood of policy easing later this year could restore confidence, he said, though clarity from CPI data or major central banks will be needed before risk appetite returns.
For now, the message from ETF flows is unmistakable – investors are de-risking, volatility is back, and the crypto market’s recovery has once again been put on hold.
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Source: https://coindoo.com/bitcoin-etfs-see-massive-536m-outflow-as-traders-flee-risk/