Bitcoin ETFs See $550M Outflows in Two Days as Investor Sentiment Cools

Bitcoin has faced notable challenges as U.S. spot Bitcoin ETFs reported significant outflows, reflecting a shift in investor sentiment.

Over the past two days, these ETFs have seen over $550 million in net withdrawals, highlighting cooling enthusiasm for the leading cryptocurrency.

On Tuesday, net outflows reached approximately $122 million. Fidelity’s FBTC and Grayscale’s GBTC led the decline, losing $95 million and $36 million, respectively. BlackRock’s IBIT, one of the largest funds, reported no net change during this period. In contrast, Bitwise’s BITB and Grayscale’s BTC funds showed modest inflows, gaining $6.47 million and $4.84 million, respectively.

The outflows follow Bitcoin’s peak last week at $99,500, which coincided with extreme greed on the sentiment index. Since then, the index has dropped from 93% to 75%, indicating a decrease in bullish sentiment. This trend suggests investors are reassessing their positions, with some potentially rotating capital into altcoins as they gain momentum.

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Although Bitcoin remains in a broader bull market, the ETF outflows underscore a cooling phase, with market participants showing caution despite the cryptocurrency’s strong long-term outlook.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.