Bitcoin price falls as ETFs record $434 million in single-day outflows

U.S. spot Bitcoin ETFs continue to post their largest outflows in months amid a broad market downturn. Investors withdrew $434 million on Thursday, according to SoSoValue data, following $545 million in outflows the day before. Even with Monday’s $561 million of inflows, the weekly balance turned negative at –$690 million.

The withdrawals coincided with Bitcoin price briefly dipping to $60,000 – its lowest level since October 2024. Market participants struggled to identify a clear fundamental trigger behind the sharp move, and the absence of a catalyst reignited debate over the role ETFs play in reshaping BTC’s supply–demand structure.

Technical analyst Bob Kendall criticized bitcoin’s rapid institutionalization through ETFs, arguing that the widespread use of derivatives and exchange-traded products dilutes the asset’s defining feature – a hard cap of 21 million coins. He noted that the “same BTC” now effectively backs ETF shares, futures, perpetuals, options, and broker-issued loans simultaneously, making the market resemble a “fractional reserve system.”

Such concerns surfaced even before ETF approval. Analysts warned that large-scale issuance of exchange-traded products could create “synthetic bitcoin” in the books of traditional financial institutions, theoretically weakening the premium of the underlying asset. Even so, ETF issuers say institutional demand remains strong, with cumulative long-term inflows still above $54 billion.

Total assets under management across U.S. spot Bitcoin ETFs have now fallen to $81 billion. Among other crypto ETPs, flows were mixed: Ethereum products lost $80.8 million on the day, while XRP and Solana funds posted modest inflows.

Bitcoin’s drop toward $60,000 amplified turbulence across the market. Volatility spiked, altcoins sold off, and index products followed BTC lower. Traders noted that the break of key support levels triggered a cascade of liquidations and added pressure to spot vehicles.

ETF flow trends are expected to remain a key sentiment indicator. For now, institutional investors are cautious, and day-to-day Bitcoin price swings continue to shape confidence in crypto funds in the short term.