Spot Bitcoin exchange traded funds (ETFs) listed in the United States registered their largest single-day capital outflow so far this year, underscoring a wave of profit-taking even as Bitcoin briefly challenged the $80,000 mark. This movement comes after a rapid recovery from April’s lows, bringing renewed focus to selling pressure across markets.
Surge in ETF outflows and spotlight on leading funds
On Wednesday, a total of $635.2 million exited Bitcoin ETFs, following Tuesday’s $233.3 million outflow. These back-to-back withdrawals pushed the week’s total outflows to $841.2 million. For the first time in six weeks, ETFs are set to record a net weekly loss after recently amassing $3.4 billion in net inflows during that period.
BlackRock’s iShares Bitcoin Trust saw the largest single withdrawal among funds, losing about $285 million. The Ark 21Shares Bitcoin ETF followed with a $177 million outflow, and Fidelity Wise Origin Bitcoin Fund recorded a $133.2 million drop. In contrast, Morgan Stanley’s Bitcoin Trust ETF remained stable with no withdrawals on Wednesday and actually gained $6 million the previous day. Since its April 8 debut, this fund has yet to witness a single outflow and has accumulated $256 million under management in a short period.
Altcoin funds under selling pressure and notable exceptions
Alongside the sizable Bitcoin outflows, Ether-linked ETFs also experienced further withdrawals. On Wednesday, Ether-related funds recorded $36.3 million in outflows, bringing the week’s total close to $184 million.
However, Solana (SOL) funds bucked the trend by attracting roughly $6 million in new investments, with weekly inflows reaching a substantial $51.6 million. Additionally, Hyperliquid (HYPE) funds saw rapid demand after launching on Tuesday, registering $1.36 million in inflows on their first day and achieving a total of $2.52 million in net inflows over two days.
Market analysis and key technical levels
Analyst reports indicate that Bitcoin’s price volatility continued as it tested the $80,000 level multiple times. According to data shared by CryptoQuant, recent movements may be attributed to profit-taking following a 37% rally in recent months, alongside mounting unrealized gains and softening spot demand from the US market.
Reports highlighted, “This level previously acted as resistance during bear markets, bringing the cost basis and unrealized profit margins for short-term investors close to zero and thus reducing selling motivation.”
As CryptoQuant emphasizes, the Bitcoin price brushed up against its 200-day moving average around $82,400, a historically critical line acting as both resistance and support. They also note that during deep corrections, demand historically tends to strengthen around the $70,000 level.
Experts point out that the market is currently shifting from net inflows to outflows in search of a new direction. Many investors appear to be locking in profits after the latest rally, prompting a short-term trend reversal.
