BTC ETFs Bleed $479.7M in Single-Day Reversal

Source: CryptoNewsNet Original Title: BTC ETFs Bleed $479.7M in Single-Day Reversal Original Link: U.S. spot Bitcoin ETFs recorded net outflows of $479.7 million on Tuesday, marking the largest single-day withdrawal in weeks. The move reversed a steady inflow trend that had supported Bitcoin’s recent price stability. Investors appeared to reduce exposure as broader market sentiment weakened and risk appetite declined across digital assets.

Grayscale and BlackRock Lead Withdrawals

The majority of the outflows came from Grayscale’s GBTC, which saw withdrawals of $160.8 million. BlackRock’s IBIT followed with $56.9 million in outflows, while several other ETF products also recorded negative flows. This showed that selling pressure was spread across both legacy and newer ETF offerings, not limited to one issuer.

Bitcoin Drops Below Psychological Support

As ETF capital exited the market, Bitcoin slipped below the $90,000 level. The decline reinforced fears of a short-term correction after weeks of sideways movement. While price action remained relatively controlled, the break below key support triggered defensive behavior among short-term traders.

Institutional Sentiment Turns Defensive

ETF flows often reflect institutional positioning. The sudden shift to heavy outflows suggested that large investors were choosing to lock in profits or reduce risk exposure. With macro uncertainty and ongoing geopolitical tensions, many funds appear to be waiting for clearer signals before re-entering aggressively.

Historical Patterns Suggest Volatility Ahead

Past data shows that large ETF outflow events usually lead to increased volatility. Similar situations in 2024 were followed by sharp price swings in both directions. However, those periods also saw capital return within weeks once market confidence stabilized.

Long-Term Trend Still Remains Intact

Despite the short-term pressure, the broader ETF adoption trend remains strong. Total assets under management across Bitcoin ETFs are still near record highs. Analysts continue to view ETFs as a structural driver of long-term demand, even if short-term flows fluctuate based on sentiment.

What Traders Should Watch Next

Traders are now monitoring whether outflows continue or reverse. Sustained selling could push Bitcoin toward deeper support levels. A quick rebound in ETF inflows, however, would likely signal renewed institutional confidence and a potential recovery phase.