ETFs See Significant Outflows as Bitcoin Dips Below $76,000
US spot Bitcoin and Ether exchange-traded funds (ETFs) experienced substantial net outflows totaling approximately $530 million on Thursday, coinciding with a sharp downturn in cryptocurrency markets and a significant drop in US stocks.
Bitcoin ETFs alone recorded $430 million in net outflows, while Ether funds saw outflows of around $100 million, according to data from SoSoValue. This reversal follows a period of strong inflows, with a combined $128 million entering these funds on Wednesday. That surge occurred as Bitcoin briefly surpassed the $80,000 mark, a move attributed in part to Democratic victories in the US midterm elections.
On Thursday, Bitcoin fell back below the $76,000 level. The tech-heavy Nasdaq Composite index experienced its steepest single-day decline since April 2025, plunging 5.5%, Reuters reported.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) was the largest contributor to Thursday’s withdrawals, shedding roughly $200 million. This followed a strong performance on Wednesday, when it attracted approximately $237 million, according to Farside Investors data. BlackRock’s iShares Bitcoin Trust (IBIT) also saw continued outflows, with another $105 million withdrawn. This marks the fifth consecutive trading session of net outflows for IBIT, bringing the total withdrawals to over $1 billion since October 30.
Following Thursday’s trading activity, Bitcoin ETFs have registered year-to-date net outflows of approximately $510 million.
Crypto analyst Michaël van de Poppe suggested on X that Bitcoin might find a near-term bottom on Friday, potentially after testing levels below $75,000. He cited the severity of the Nasdaq’s decline as a factor. “I expect Nasdaq to bottom tomorrow. The same for Bitcoin, potentially after sweeping $75,000,” he wrote.
Dean Lyulkin, CEO of Cardiff and founder of The Dean’s List investment publication, commented that the current market environment differs significantly from the period preceding the 2008 financial crisis. “The global financial crisis wasn’t caused by Democrats taking Congress,” Lyulkin stated, noting that the Federal Reserve had already implemented substantial interest rate hikes and the housing market was weakening prior to that crisis.
While acknowledging potential vulnerabilities in areas such as commercial real estate, private credit, and possibly excessive spending on artificial intelligence, Lyulkin argued that household balance sheets and the banking system are considerably more robust today.
