Bitcoin ETFs in the United States had record withdrawals on Thursday, snapping a 15-day sequence of inflows. Investors pulled $680M from 12 ETFs with direct Bitcoin exposure, ending a streak that had accumulated more than $6.7B since November 27.
Most ETFs saw net outflows, with Fidelity's FBTC topping at $208.5M. Only WisdomTree's ETF had a minor inflow of $2M. BlackRock's IBIT remains neutral. Outflows corresponded with a sharp drop in Bitcoin's price. Bitcoin fell below $93,000, down 14% from its all-time high of $108,000. Other cryptocurrencies experienced even greater falls, with some plummeting about 26%.
This price drop resulted in large liquidations of over $1.3B in the cryptocurrency market. Over $1.1B of them were long positions, which impacted approximately 414,000 traders. Despite the drop, analysts are still bullish about Bitcoin ETFs. They expect these products to outperform gold ETFs in terms of assets under management as Bitcoin resumes its positive trend in 2025.
