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U.S. spot bitcoin ETFs suffered their second-largest daily outflow on record Thursday, with $869.86 million exiting the products as bitcoin fell below $100,000 for the first time in 188 days.
Grayscale Mini Trust led the exodus with $318.2 million in withdrawals, followed by BlackRock’s IBIT at $256.6 million and Fidelity’s FBTC at $119.93 million, according to SoSoValue data.
The selloff extends a three-week trend that has seen roughly $2.64 billion pulled from spot bitcoin ETFs as macroeconomic uncertainty and regulatory concerns drive institutional investors toward safer assets.
“The move below $100,000 has erased weeks of optimism,” one institutional trader wrote on social media. “Until buyers return in force, flows into spot Bitcoin ETFs could remain negative.”
The latest outflow from spot Bitcoin ETFs coincided with a sharp wave of long-position liquidations. Data from Coinglass showed that more than $316 million in leveraged long positions were wiped out across the broader crypto market on Thursday. Bitcoin accounted for the majority, with liquidations totaling $190.65 million in just one hour, followed by Ethereum at $49.88 million.
Analysts note that when Bitcoin experiences sudden downward volatility, leveraged traders are often the first to be hit triggering a cascade that amplifies price declines. With spot Bitcoin ETFs facing simultaneous withdrawals, the dual pressure deepened the selloff.
Ether ETFs also registered $259.72 million in outflows, the largest since October 13, highlighting that investor risk reduction is not limited to Bitcoin.
“Liquidation cascades often shake out the weakest hands,” said Lena Patel, derivatives strategist at BlockMetrics Research. “But when they overlap with sustained outflows from spot Bitcoin ETFs, the result can be sharper moves than fundamentals would suggest.”
Bitcoin dropped to $95,182 during Asia trading hours on Friday, its lowest level in more than six months, before stabilizing near $95.21K at press time.
The decline represents a 6.2% daily drop, narrowly underperforming the broader crypto market’s 6.15% pullback. Crucially, the asset fell below the 23.6% Fibonacci retracement level at $111,958, a technical zone often watched by market participants.
Sentiment indicators also flashed warning signs. The Fear & Greed Index registered 22/100, suggesting that investors remain in extreme caution territory.
Tim Enneking, managing partner at Psalion, told Forbes that several structural concerns have weighed on Bitcoin’s trajectory.
“There is still skepticism in many corners of the market,” Enneking said. “Between the bubble concerns, the anticipated end of this cycle’s bull market, and macroeconomic slowdown fears, the pressure is understandable.”
Enneking added that investors may be overlooking how significantly Bitcoin has appreciated in recent years, making corrections sharper and more psychologically impactful.
The persistent outflows from spot Bitcoin ETFs appear closely tied to expectations of new regulatory announcements in the U.S. and Europe. Market participants are bracing for updates on capital-gains treatment, ETF structuring rules, and potential restrictions on leveraged crypto products as all factors that may influence institutional allocation decisions.
According to analysts at CryptoPolicy Group, the recent pullback indicates that “regulatory fog is prompting cautious positioning,” especially among large asset managers with exposure to spot Bitcoin ETFs.
“Whenever policy signals become unclear, ETF participants tend to de-risk first and reassess later,” said Martin Hale, senior policy analyst at the firm.
As volatility intensifies, investors and institutions will watch whether Bitcoin can reclaim the $100K threshold and whether flows into spot Bitcoin ETFs stabilize or continue reinforcing downward market pressure.
