Heavy Withdrawals Put Pressure on Crypto ETFs Ahead of Key Inflation Data

U.S. crypto ETFs were hit by a sharp wave of withdrawals on Thursday, signaling renewed caution across digital asset markets as traders reassessed risk ahead of key macro events.

U.S. spot Bitcoin ETFs recorded their heaviest wave of withdrawals in two weeks on Thursday, with investors pulling a combined $194.6 million, according to data from Farside Investors. The downturn was led by BlackRock’s IBIT, which shed nearly $113 million, while Fidelity’s FBTC saw more than $54 million leave the fund. VanEck, Grayscale, and Bitwise products also registered notable outflows.

Trading activity weakened alongside withdrawals. After posting more than $5 billion in volume earlier in the week, ETF turnover slipped to roughly $3.1 billion on Thursday, extending a three-day decline.

Bitcoin itself softened to about $91,300 early Friday, down roughly 2.2% over the past day.

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Market Pressure Builds as Basis Trades Unwind

According to Nick Ruck of LVRG Research, much of the selling stems from arbitrage desks exiting basis trades. As the spread between spot and futures prices narrowed below breakeven, traders were pushed to close leveraged positions, adding pressure to the market during a period of elevated volatility.

Ruck noted that the next catalysts on traders’ radar are upcoming U.S. inflation releases and the Federal Reserve’s Dec. 10 rate decision. A 25-basis-point cut remains the consensus expectation, and markets appear to be hoping for a policy message that signals continued easing into 2026.

Exchange Supply Continues to Shrink

Timothy Misir, head of research at BRN, said that despite the ETF outflows, on-chain data points to ongoing accumulation. Combined figures from CryptoQuant and Glassnode show that exchange balances have fallen to around 1.8 million BTC, the lowest level in seven years.

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Misir described the market tone as quietly constructive, with thinning supply and stable price behavior forming a base — though he emphasized that Bitcoin still needs a decisive push into the $96,000–$106,000 range to unlock the next stage of momentum.

Ethereum ETFs Face Withdrawals as Well

The pressure wasn’t limited to Bitcoin. U.S. spot Ethereum ETFs recorded $41.6 million in outflows on Thursday, reversing the $140 million of inflows seen the day before. Grayscale’s ETHE accounted for the largest share of redemptions, shedding nearly $31 million.