US spot Bitcoin ETFs experienced a record $935 million in net outflows on Tuesday, marking the sixth consecutive day of withdrawals as investors turn risk-averse. The total outflows for the week have now reached approximately $1.5 billion, driven by a broader market sell-off and growing macroeconomic concerns following President Trump’s tariff threats on Mexico and Canada.
Fidelity, BlackRock, and Grayscale Lead the Outflows
According to data from Farside Investors and Trader T, the biggest ETF redemptions came from:
✅ Fidelity’s FBTC: -$344 million✅ BlackRock’s IBIT: -$162 million✅ Bitwise’s BITB & Grayscale’s BTC: -$85 million each✅ Franklin Templeton’s EZBC: -$74 million✅ Grayscale’s GBTC: -$66 million✅ Invesco’s BTCO: -$62 million
Other ETFs from Valkyrie, WisdomTree, and VanEck also suffered net outflows as investors sought to minimize risk exposure.
This surpasses the previous record of $672 million in withdrawals set on December 19, when Bitcoin had dipped below $97,000.
Bitcoin Price Drops to $86K – Market Struggles to Recover
The mass ETF exodus comes as Bitcoin touched $86,000 today, its lowest level since November, before rebounding slightly to $88,900. The leading cryptocurrency is now down 7% in the past seven days, according to TradingView.
The broader crypto market is also feeling the impact:
📉 Total crypto market cap: Down 3.5% in the past 24 hours📉 Leveraged liquidations: $1.6 billion wiped out on Monday (Crypto Briefing)📉 Altcoins struggle: Many alternative cryptocurrencies remain in deep correction
Hedge Funds Unwind Bitcoin ETF Trades – More Selling Ahead?
Former BitMEX CEO Arthur Hayes has warned that hedge funds unwinding their basis trades involving Bitcoin ETFs could lead to further selling pressure.
“Lots of $IBIT holders are hedge funds that went long ETF short CME futures to earn a yield greater than where they fund, short-term US Treasuries,” Hayes explained.“If Bitcoin’s price falls, these funds will sell $IBIT and buy back CME futures,” potentially accelerating the downward momentum.
Trump’s Tariff Move Sparks Inflation Fears – Investors Flee Risk Assets
The latest market sell-off coincides with President Trump’s reactivation of tariffs on Mexico and Canada, reigniting inflation concerns and pushing investors away from riskier assets like Bitcoin.
Amid growing uncertainty, the Crypto Fear and Greed Index has dropped from 25 to 21, firmly placing it in the “extreme fear” zone—a sign that traders are increasingly cautious.
What’s Next for Bitcoin ETFs and the Crypto Market?
With continued ETF outflows and macro uncertainty looming, analysts are closely watching Bitcoin’s next moves. Some believe the market may stabilize if institutional demand returns, while others warn of further downside risks.
For now, Bitcoin’s price action and ETF flows will remain key indicators of whether the crypto market can rebound or faces deeper corrections in the coming weeks.
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