Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced their largest-ever daily net outflows on Tuesday, with total withdrawals reaching $1.01 billion, excluding data from Ark Invest’s ARKB, according to SoSoValue.
Leading the outflows, the Fidelity Wise Origin Bitcoin Fund (FBTC) saw a withdrawal of $344.65 million, while BlackRock’s iShares Bitcoin Trust (IBIT) followed with $164.3 million in outflows.
Funds from Franklin Templeton (EZBC), Grayscale (GBTC), and Invesco (BTCO) also experienced substantial net outflows. vAs of the time of reporting, Ark Invest and 21Shares’ ARKB had not disclosed their data.
Other notable losses included $100 million from Valkyrie’s BRRR, $88.3 million from Bitwise’s BITB, and $85 million from Grayscale’s Mini Bitcoin Trust.
Tuesday’s significant withdrawals mirrored a broader crypto market downturn, with Bitcoin dropping to a yearly low of around $88,000.
Over the past six consecutive trading days, spot Bitcoin ETFs have seen more than $2 billion in cumulative outflows, underscoring growing investor caution.
The record-breaking outflows surpassed the previous high of $671.9 million recorded on December 19, which coincided with Bitcoin’s sharp decline from a peak of approximately $108,000.
Since the launch of spot Bitcoin ETFs in January 2024, the products have attracted approximately $39 billion in net inflows.
As reported, a significant portion of inflows into U.S. spot Bitcoin ETFs is driven by short-term trading strategies rather than long-term investments, according to a report by 10x Research.
The majority of the inflows, about 56%, are linked to arbitrage strategies, particularly the “carry trade.”
“This indicates that the actual demand for Bitcoin as a long-term asset in multi-asset portfolios is significantly smaller than media reports suggest,” Thielen explained.
However, just $17.5 billion—around 44%—of that reflects genuine long-term buying, said Markus Thielen, head of research at 10x Research.