Bitcoin ETFs See $51.3M Outflows After 7-Day Inflow Streak

U.S. spot Bitcoin ETFs experienced a notable shift in investor sentiment on Wednesday, recording $51.3 million in net outflows that ended a seven-day inflow streak. This reversal followed an exceptionally strong period that saw nearly $3 billion flow into these funds the previous week, according to data from Farside Investors. The previous week’s inflows included more than $1 billion into BlackRock’s iShares Bitcoin Trust (IBIT), $850 million into Fidelity’s Wise Origin Bitcoin Fund (FBTC), and smaller gains across Ark 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) offerings.

The outflow pattern revealed significant divergence among major providers. BlackRock’s iShares Bitcoin Trust bucked the trend by attracting approximately $150 million in fresh inflows on Wednesday, reinforcing its dominant position in the market. However, this positive momentum was offset by Fidelity’s Wise Origin fund shedding $116 million and Grayscale Bitcoin Trust (GBTC) recording $62.6 million in outflows the same day. This combined outflow of nearly $178 million from Fidelity and Grayscale effectively erased much of their earlier gains from the inflow streak.

Bitcoin’s price action remained relatively muted despite the Federal Reserve’s decision to cut its benchmark interest rate by 0.25 percentage points to a range of 4% to 4.25%. The cryptocurrency traded at approximately $117,750, representing a modest 1.7% daily gain according to CoinGecko data. This subdued reaction suggests that investors had largely priced in the widely expected monetary policy move, with attention shifting instead to the Fed’s more cautious economic forecasts, particularly regarding employment outlook.

Ethereum, meanwhile, demonstrated slightly stronger momentum, trading around $4,600 with a 2.8% daily gain. The broader crypto market experienced a brief post-Fed rate cut rally into Thursday, led by platforms including Hyperliquid and Avalanche. Farzam Ehsani, co-founder and CEO of crypto exchange VALR, noted that the Fed’s move “injects liquidity and pushes investors to look for assets with stronger return potential,” adding that Bitcoin “naturally stands out in that environment.”

Industry experts characterized the outflow as healthy short-term rebalancing rather than a fundamental shift in sentiment. Farzam Ehsani of VALR told Decrypt that “the pause in inflows looks like healthy short-term rebalancing rather than any real change in sentiment.” He emphasized that after more than $2.3 billion poured into Bitcoin ETFs over just one week, “it’s natural for markets to catch their breath.”

The broader trend continues to show institutions steadily building allocations, with growing demand for regulated exposure through ETFs. Ehsani highlighted that the current cycle appears more bullish due to crypto infrastructure demonstrating readiness “to absorb and channel that capital” from institutional investors. He added that “the inflows we’ve seen are likely just the beginning,” noting that “it’s the combination of accommodative macro conditions and crypto’s fresh maturity that makes this moment promising.” This perspective suggests that despite short-term fluctuations, the underlying institutional demand for Bitcoin and cryptocurrency exposure through regulated vehicles remains robust.