Spot Bitcoin ETFs Shed $1.62B in Four-Day Negative Streak
U.S. spot Bitcoin ETFs experienced four consecutive days of outflows, losing $1.62 billion amid increased macroeconomic and geopolitical volatility. Daily redemptions escalated from $394.68 million last Friday to $708.71 million on Wednesday, with a further $32.11 million on Thursday. Declining profitability in the Bitcoin basis trade, which now yields less than 5% (down from 17% a year ago), has driven hedge funds to exit, intensifying selling pressure. This withdrawal has coincided with broader risk-off sentiment: the S&P 500 dropped significantly, and Bitcoin fell 5.4% this week to $89,500. Investor sentiment is increasingly bearish, with prediction markets raising the probability of Bitcoin falling to $69,000. A lack of fresh interest from large investors and broader institutional risk aversion have added to the pressure. Observers note that Bitcoin’s growing status as a macro asset makes it sensitive to macroeconomic conditions and Federal Reserve policy. A shift in interest rates or improved profitability could reverse the trend, but substantial ETF growth will depend on longer-term, risk-tolerant investors.
