Bitcoin ETF Outflows Hit $1.2B as Wall Street Boosts Crypto Exposure
Institutions trim positions, but off-chain trading and improved liquidity support renewed risk appetite
Bitcoin BTC $104,987 ETFs experienced their third-largest weekly outflow on record, even as Wall Street continues increasing crypto exposure. Last week, $1.2 billion exited Bitcoin ETFs, accompanied by $508 million from Ethereum products, while Solana ETFs drew $137 million in inflows, according to SoSoValue.
Despite these outflows, markets rebounded: Bitcoin rose 4.4% to $106,172, and Ethereum climbed 7.2% to $3,617, partially recovering from losses tied to the U.S. government shutdown and macro uncertainty. Analysts note that the drawdowns mainly reflect position trimming after strong inflows since early 2024, rather than broad market capitulation.
Macro Conditions Support Risk
Liquidity indicators, including the SOFR-EFFR spread, have normalized since late October. Meanwhile, the dollar index (DXY) rally has stalled, and Fed repo borrowing has returned to zero—signals that encourage renewed risk-taking across financial markets.
Institutional Activity Remains Strong
Institutional engagement remains robust. BlackRock’s Bitcoin ETF continues leading inflows, while Fidelity and VanEck expand spot offerings. Much of this exposure occurs off-chain, reflecting ongoing caution over infrastructure reliability.
Market maker Enflux highlighted the broader trend: crypto is transitioning from speculative trading to professional infrastructure and mainstream financial integration, with ETFs acting as a bridge.
“When the Fed injects, Bitcoin rallies; when yields twitch, it falls. The dream of decoupling is gone, and the market will either professionalize or disappear,” Enflux said.
