US spot Bitcoin exchange-traded funds recorded their largest daily outflow since late January on Wednesday, as Bitcoin struggled to hold the $80,000 level following a sharp rebound from April lows. Data from SoSoValue shows Bitcoin funds posted $635.2 million in net redemptions, extending the previous session’s $233.3 million outflow and pushing weekly losses to $841.2 million.
The sell-off puts ETFs on track for their first week of net losses after six consecutive weeks of gains totaling approximately $3.4 billion. The volatility comes as Bitcoin continues to swing around the psychologically important $80,000 mark, repeatedly slipping below and reclaiming the level.
BlackRock’s IBIT leads the sell-off
BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the largest share of Wednesday’s outflows, with roughly $285 million exiting the fund, according to Farside data. The ARK 21Shares Bitcoin ETF (ARKB) followed with $177 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) saw $133.2 million in redemptions.
Morgan Stanley’s Bitcoin Trust ETF (MSBT) bucked the trend, recording no outflows on Wednesday and posting about $6 million in inflows on Tuesday. Since its April 8 launch, the fund has accumulated roughly $256 million and has yet to see a single day of net redemptions.
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Ether ETFs follow the negative trend
The selling pressure extended to Ether ETFs, which recorded $36.3 million in outflows on Wednesday, bringing weekly losses to roughly $184 million. Solana-linked funds provided a rare bright spot, attracting around $6 million in inflows, with week-to-date gains reaching $51.6 million.
Hyperliquid (HYPE)-linked funds also saw modest inflows of $1.36 million on their debut Tuesday, accumulating $2.52 million in cumulative net inflows.
Technical signals point to fading momentum
Bitcoin’s recent price action has been driven by profit-taking pressure following a 37% rally from April lows. The cryptocurrency tested its 200-day moving average near $82,400, a level that has historically acted as resistance during bear-market rebounds, according to a note from CryptoQuant shared with Cointelegraph.
Analysts point to rising profit-taking, elevated unrealized gains, and weakening US spot demand as signs that momentum may be fading. On-chain data suggests potential support near $70,000 if a deeper correction develops.
“This level has historically acted as a key resistance-turned-support band during bear markets, as it represents the average cost basis of short-term traders and the level at which unrealized profit margins compress back toward zero, reducing the incentive for further selling,” the CryptoQuant report said.
Conclusion
Wednesday’s $635 million outflow marks the largest single-day withdrawal from Bitcoin ETFs since January 29, when funds posted about $818 million in losses. The sell-off underscores the market’s sensitivity to Bitcoin’s price action around key technical levels and suggests that investor sentiment remains cautious despite the broader uptrend from April lows.
FAQs
Q1: What caused the $635 million Bitcoin ETF outflow?
The outflows were primarily driven by profit-taking after Bitcoin rallied 37% from April lows, combined with technical resistance near the 200-day moving average and weakening spot demand.
Q2: Which Bitcoin ETF saw the largest outflows?
BlackRock’s iShares Bitcoin Trust (IBIT) led the sell-off with approximately $285 million in redemptions on Wednesday.
Q3: What is the key support level for Bitcoin if the correction deepens?
On-chain data from CryptoQuant suggests potential support near $70,000, a level that has historically acted as a key resistance-turned-support band during bear markets.
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