U.S. Bitcoin ETFs see record daily outflows amid market fall
Bitcoin tumbles below $87,000 as ETF outflows hit record $937 million.
Tuesday proved to be a challenging day for the crypto market as Bitcoin (BTC) fell to three‑month lows below $87,000, dragging down the broader digital asset space.
Investors reacted swiftly, withdrawing funds from U.S.-listed spot Bitcoin ETFs at an unprecedented rate, reports CoinDesk.
Record Redemptions Hit Crypto ETFs
Data from SoSoValue shows that the 11 spot Bitcoin ETFs registered a cumulative net outflow of $937.78 million—the largest single‑day redemption since these funds began trading in January 2024.
Among the major funds, Fidelity’s FBTC experienced the highest outflow at $344.65 million, while BlackRock’s IBIT saw redemptions totaling $164.37 million. Other funds recorded outflows of less than $100 million each, reflecting a broad-based retreat by investors.
Declining Premiums Undermine Arbitrage Strategies
Analysts attribute this withdrawal to a sharp decline in the premium of CME‑listed Bitcoin futures. The cash‑and‑carry arbitrage strategy—where institutions buy spot ETFs while selling futures to capture the premium—has become less attractive as these carry trades now offer yields barely above the 10‑year U.S. Treasury note, which was yielding 4.32% at press time.
Velo Data reported that the annualized one‑month basis for CME Bitcoin futures fell to 4% on Tuesday, the lowest in nearly two years, down significantly from nearly 15% in December. Similarly, the basis in Ether futures declined sharply to around 5%, contributing to a total outflow of $50 million from U.S. spot Ether ETFs.
Looking Ahead
The dramatic reduction in futures premiums has not only dampened the appeal of the cash‑and‑carry arbitrage strategy but also raised concerns about investor confidence amid broader market volatility. As regulatory and macroeconomic factors continue to influence the cryptocurrency landscape, market participants will be closely monitoring whether these trends signal a longer-term shift in ETF investment strategies or a temporary market correction.
Recently we wrote, that Bitcoin price is struggling to regain momentum after its recent sharp decline.
