Bitcoin ETF Withdrawals Hit Levels Last Seen in May
Spot Bitcoin ETFs are experiencing their heaviest withdrawals since May, totaling nearly $2 billion in one week, signaling reduced institutional risk appetite.Summary
Spot Bitcoin ETFs are posting their largest outflows since May, with redemptions climbing to roughly $2.3 billion, reversing a recent trend of inflows. Data shows spot Bitcoin ETFs shed nearly $2 billion in the last seven days, marking one of the steepest weekly declines since their launch. This selling pressure is concentrated in major vehicles like BlackRock's IBIT and Fidelity's FBTC, but suggests a broader retreat. The current pace of redemptions is a six-month high, mirroring the $4.8 billion pulled out in May amid high volatility. Analysts attribute this shift to tightening risk conditions, particularly rising US 10-year Treasury yields, which encourage professional allocators to favor assets with more predictable income over high-beta assets like Bitcoin. Bitcoin's price has subsequently stalled, declining about 16% since early October. The heavy redemptions force issuers to sell underlying Bitcoin holdings, adding selling pressure, though current flows suggest portfolio managers are rotating into duration-sensitive instruments rather than abandoning digital assets entirely.
(Source：BeInCrypto)