While the broader digital asset landscape witnesses a surge of optimism fueled by the filing and launch of multiple altcoin Exchange-Traded Funds (ETFs), the flagship U.S. spot Bitcoin ETF sector is navigating turbulent waters.
On the 4th of December, the spot BTC product experienced a significant setback. It recorded $194.6 million in net outflows.
This figure marks the largest single‑day outflow in the market over the past two weeks. As a result, it has sparked renewed scrutiny of Bitcoin’s current demand dynamics as an investment vehicle.
That said, the substantial $194.6 million outflow was not an isolated event, but a concentrated move led by the sector’s largest players, according to data compiled by SoSoValue.
Bitcoin ETF flow data
BlackRock’s iShares Bitcoin Trust (IBIT) saw the largest impact, with $112.9 million in redemptions. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed, recording $54.2 million in outflows.
Selling pressure spread across other funds as well. VanEck’s HODL lost $14.34 million, Grayscale’s GBTC shed $10.13 million, and Bitwise’s BITB registered $3.01 million in negative flow.
This wave of redemptions marked a sharp escalation compared to the mild $14.9 million net outflow the previous day. It firmly established the 4th of December as the biggest single‑day sell‑off in the spot BTC market since the 20th of November.
Ethereum and Solana ETF analysis
On the other hand, Ethereum ETF saw a significant swing, recording a hefty $140.2 million in net inflows on the 3rd of December, only to be followed by a substantial $41.5 million in outflows on 4th December.
Similarly, the Solana ETF, which has received recent institutional attention, experienced a similar effect, logging an outflow of $32.9 million on 3rd December, countered by a smaller inflow of $4.2 million on 4th December, as per Farside Investors data.
These contrasting, yet equally volatile, movements suggest investors may be shifting capital quickly across crypto assets in search of better risk-adjusted returns or reacting defensively to market conditions.
BTC’s price action
This also coincided with the token’s volatile price movements. According to CoinMarketCap, major cryptocurrencies recorded losses over the past 24 hours. At press time, Bitcoin [BTC] traded at $91,375.66, down 2.16%.
The simultaneous decline in BTC’s price and capital outflows from spot ETFs point to broad de‑risking among institutional investors.
Yet, the sharp reversal is notable given that Bitcoin had surged above $92,000 recently after a liquidity‑driven short squeeze, fueled by $209.5 million in short liquidations despite the wider bearish trend.
That rally was supported by the U.S. Federal Reserve ending quantitative tightening (QT) on the 1st of December, which injected $13.5 billion into the banking system, alongside renewed positive flows into Bitcoin ETFs.
Together, these factors underscore a market environment that remains highly uncertain and unstable.
Final Thoughts
- The sharp $194.6 million outflow from spot Bitcoin ETFs signals growing institutional caution, even as altcoin ETFs experience volatile rotation.
- Simultaneous inflows and outflows across ETH and SOL ETFs show institutions rapidly reallocating capital in response to short-term market conditions.