Bitcoin ETFs See $2.8B Outflows as SEC Registers Paxos

U.S.-listed spot Bitcoin exchange-traded funds recorded $2.84 billion in net outflows over nine trading sessions, the longest withdrawal streak since the funds launched in 2024, according to Farside Investors. On Thursday the funds logged $223 million in net withdrawals, extending the streak.

The nine-session total is below the roughly $3.2 billion pulled during an eight-session outflow in February 2025, the previous multi-day record, based on available flow records.

The outflows coincided with renewed selling pressure among some large corporate holders and with investor interest in alternative crypto products, including new altcoin-focused ETFs such as Hyperliquid (HYPE).

Separately, the Securities and Exchange Commission granted registration on Thursday to Paxos Securities Settlement Company as a clearing agency. Paxos described the registration as making its subsidiary the only blockchain-native firm approved to provide clearing and settlement services as a central securities depository in the United States.

Clearing agencies verify trade details, match buyers and sellers, and ensure the exchange of cash and securities is completed. The registration allows Paxos to offer those post-trade functions using blockchain-based systems, the company stated.

In remarks at Georgetown Law on Wednesday, SEC Commissioner Hester Peirce argued that financial privacy is undervalued in regulation and that privacy-preserving technologies, including cryptographic tools, are legitimate components of modern financial infrastructure. Peirce added, “Empowering government to be able to identify, pursue, and punish the bad guys is important to the security of the nation and its people, but so too is empowering people to protect information about their lives, including their financial lives,” according to an SEC transcript.

The ETF flow figures cover activity since the products began trading in 2024. The Paxos registration provides regulatory approval for a blockchain-native clearing firm to operate in U.S. post-trade markets.