Bitcoin ETF Outflows Top $1.2B as Wall Street Increases Crypto Exposure
Institutions trim positions while off-chain trading and improved liquidity support risk-taking
Bitcoin BTC $104,987 ETFs saw their third-largest weekly outflow on record, even as Wall Street continues expanding crypto bets. Last week, $1.2 billion exited Bitcoin ETFs, alongside $508 million from Ethereum funds, while Solana products attracted $137 million in inflows, according to SoSoValue.
Despite the outflows, markets rebounded: Bitcoin rose 4.4% to $106,172, and Ethereum gained 7.2% to $3,617, partially recovering from losses tied to the U.S. government shutdown and macro uncertainty. Analysts note the sell-off reflects position trimming after strong inflows since early 2024, rather than broad capitulation.
Macro Conditions Support Risk Appetite
Liquidity indicators, including the SOFR-EFFR spread, have normalized since late October, while the dollar index (DXY) rally has stalled and Fed repo borrowing has dropped to zero. These developments signal improved conditions for renewed market risk-taking.
Wall Street Leads Off-Chain
Institutional activity remains strong. BlackRock’s Bitcoin ETF continues to drive inflows, with Fidelity and VanEck expanding spot offerings. Much of this exposure remains off-chain, reflecting ongoing caution regarding crypto infrastructure reliability.
Market maker Enflux noted the broader trend: speculative trading is giving way to professional infrastructure and mainstream financial integration, with ETFs serving 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.
