Investor Sentiment Cools with Third-Largest Withdrawal on Record

U.S. spot Bitcoin Exchange-Traded Funds (ETFs) experienced their third-largest net weekly outflow, with investors pulling approximately $1.2 billion from the products. This significant withdrawal highlights a cooling sentiment in the market after a period of strong performance, though a minor inflow on Friday broke a consistent losing streak.

The week was characterized by sustained outflows, beginning with substantial withdrawals that continued for four consecutive days. The trend was largely driven by major funds, including Grayscale’s GBTC, which has consistently seen capital exit since its conversion to a spot ETF. Other funds, which had previously enjoyed strong inflows, also contributed to the negative figures.

A Glimmer of Recovery

While the overall weekly picture was decidedly negative, the trend reversed slightly on Friday. The market saw a modest net inflow, breaking the four-day pattern of withdrawals. This late-week rebound, however, was not nearly enough to offset the massive outflows that occurred from Monday through Thursday.

The data suggests that while some investors are taking profits or reducing their exposure, others may be seeing the lower price points as a new entry opportunity. The heavy outflows underscore a period of uncertainty, as the market digests recent price movements and broader economic signals.

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