Bitcoin and Ether ETFs Lose $530M as Market Sell-Off Hits Crypto and Stocks
US spot Bitcoin and Ether exchange-traded funds (ETFs) saw heavy withdrawals on Thursday as a sharp market sell-off pushed Bitcoin below $76,000 and sent US technology stocks lower.
The two ETF groups recorded approximately $530 million in combined net outflows, according to SoSoValue data. Bitcoin ETFs accounted for around $430 million of the withdrawals, while Ether funds lost close to $100 million.
The latest figures marked a sharp reversal from Wednesday, when the funds attracted $128 million in combined inflows. Bitcoin had briefly recovered above $80,000 following Democratic victories in the US midterm elections.
However, investor sentiment weakened on Thursday as Bitcoin prices fell below $76,000. The Nasdaq Composite also dropped 5.5%, marking its largest single-day decline since April 2025, according to Reuters.
Fidelity's Wise Origin Bitcoin Fund (FBTC) recorded the largest withdrawals among individual funds, losing approximately $200 million. This came just one day after the fund attracted around $237 million in fresh capital.
BlackRock's iShares Bitcoin Trust (IBIT) also continued to face selling pressure, recording another $105 million in net outflows. The fund has now reported five consecutive trading sessions of withdrawals, with more than $1 billion leaving since October 30.
Following Thursday's trading session, Bitcoin ETFs had accumulated approximately $510 million in net outflows since the beginning of the year.
Bitcoin ETF Outflows Reflect Wider Market Pressure
The latest withdrawals came as cryptocurrency investors reacted to falling equity markets and growing concerns about the broader economic outlook.
Some market observers expect Bitcoin and technology stocks could approach a short-term bottom after the latest declines. Bitcoin could first test levels below $75,000 before attempting a recovery.
However, concerns about the current financial environment remain. Potential risks include weakness in commercial real estate, private credit markets and high levels of spending on artificial intelligence infrastructure.
Despite these concerns, the current situation has also been described as different from the conditions that preceded the 2008 financial crisis.
Household finances and the banking system are considered stronger than they were before the global financial crisis. The previous crisis also involved significant interest rate increases and a weakening housing market before the broader financial collapse.
For Bitcoin, the direction of US stocks and institutional investment flows could remain important in the near term. Continued ETF withdrawals would signal weaker demand from traditional investors, while a return to positive flows could provide support for the market.