$536M Flees Bitcoin ETFs in Single Day—Is This the Start of a Liquidation Cascade?

Blood in the crypto streets as institutional players hit the eject button.

Wall Street's Bitcoin experiment faces stress test

Nearly half a billion dollars vaporized from spot Bitcoin ETFs in 24 hours—the largest single-day exodus since their January launch. Traders are bailing faster than a hedge fund manager facing SEC scrutiny.

Liquidation dominos begin to fall

The outflows coincide with forced position closures across derivatives markets. Like clockwork, leverage gets wrecked when volatility strikes. Who could've predicted that? (Answer: everyone with a 2018 deja vu sense).

Silver lining for diamond hands?

History shows these flushouts often precede violent rebounds. But try telling that to the over-leveraged degens nursing 80% portfolio haircuts. Meanwhile, traditional finance quietly scoops up coins at wholesale prices—because nothing beats buying when there's blood in the streets (except maybe insider trading).

TLDR

• Spot Bitcoin ETFs recorded a total daily net outflow of $536.4 million on Thursday.
• This marked the largest single-day outflow for Bitcoin ETFs since August 1, 2025.
• ARK & 21Shares’ ARKB saw the highest outflow with $275.15 million exiting the fund.
• Fidelity’s FBTC followed with $132 million in investor withdrawals.
• Other Bitcoin ETFs, including those from BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie, also experienced losses.

U.S. spot Bitcoin ETFs recorded a total daily net outflow of $536.4 million on Thursday. This marked the largest single-day outflow since August 1, 2025. The massive outflows reflect rising market concerns amid macroeconomic and geopolitical pressures.

ARKB Leads Bitcoin ETF Withdrawals Amid Broad Crypto Liquidations

Eight out of 12 bitcoin ETFs reported outflows, signaling a shift in sentiment across digital asset markets. ARK & 21Shares’ ARKB led the exits, seeing $275.15 million withdrawn. Fidelity’s FBTC followed, with $132 million in net outflows during Thursday’s trading session.

Meanwhile, BlackRock’s IBIT and Grayscale’s GBTC also posted significant outflows, though smaller in scale. Other issuers including Bitwise, VanEck, and Valkyrie also saw negative flows. Overall, Bitcoin ETFs experienced declining investor interest across several issuers.

This shift coincided with ongoing liquidations across the crypto market, wiping over $20 billion in Leveraged positions. According to SoSoValue, these large redemptions came as risk assets faced fresh pressure. “The $536 million in net outflows primarily reflects a sharp surge in investor risk aversion,” said Nick Ruck, Director at LVRG Research.

Ethereum ETFs Reverse Trend With $56.9 Million in Outflows

Spot ethereum ETFs saw $56.9 million in outflows on Thursday, reversing gains from the prior two trading days. The move suggests that Ethereum-based funds also felt the impact of the broader market’s deleveraging. Investors reacted swiftly to shifting macroeconomic signals.

These Ethereum ETF outflows came as overall crypto sentiment weakened after Trump’s 100% tariffs on Chinese imports. The development shook confidence in digital asset markets tied to broader economic narratives. Traders remain sensitive to global trade developments and policy shifts.

The Ethereum ETF market, like the Bitcoin ETF market, is struggling with volatility amid policy and geopolitical uncertainty. “Prices may face further downward pressure,” Ruck noted. Current conditions show increased fragility across both asset classes in ETF form.

Geopolitical Risks, Monetary Policy Weigh on Bitcoin ETFs

Market analysts cited heightened geopolitical tensions and restrictive monetary policy as key drivers behind ETF redemptions. “The market is still grappling with two unresolved forces,” said Justin d’Anethan, Head of Research at Arctic Digital. These include policy uncertainty and lingering inflation pressures.

Bitcoin ETFs face strong headwinds from economic uncertainty and investor repositioning in risk-off environments. Volatility remains high as liquidity drops. Bitcoin ETF flows have steadily declined since last Friday’s historic sell-off.