Bitcoin ETFs Face $850M Outflows as Retail Demand Weakens

U.S.-listed spot Bitcoin exchange-traded funds (ETFs) are facing mounting pressure as investors pulled out approximately $127.5 million on Thursday, according to Farside Investors.

This marks the third straight day of outflows, bringing weekly losses to more than $850 million. Alternative data from SoSoValue paints an even bleaker picture, showing over $300 million withdrawn in a single day earlier this week.

The contrasting numbers highlight differences in data tracking methods, but both sets confirm the same trend: crypto ETF sentiment has soured sharply. These outflows follow a summer of strong inflows that had boosted optimism among institutional and retail traders.

Now, a global risk-off mood fueled by rising bond yields, inflation concerns, and regulatory scrutiny is reversing that momentum.

Ether ETFs and Retail Investors Retreat

Ethereum-linked ETFs are also under strain, with SoSoValue reporting more than $500 million in withdrawals this week alone. Despite optimism surrounding Ethereum’s scaling roadmap and staking adoption, investors appear to be prioritizing liquidity and capital protection over long-term bets.

The bearish tone is not limited to institutions. On-chain data shows that retail Bitcoin demand has slipped into negative territory, with transaction volumes for transfers under $10,000 falling by 5.7% over the past month. CryptoQuant analysts describe retail traders as “tourists” in the market, eager during hype cycles but quick to exit when volatility rises.

This mirrors past market cycles. The last time retail demand dropped into the negative zone, Bitcoin soon rebounded to new highs. Whether this pattern repeats depends heavily on broader sentiment and macroeconomic conditions.

Market Outlook and Investor Sentiment

Despite the turbulence, analysts maintain that spot Bitcoin and Ether ETFs represent a milestone for mainstream crypto adoption.

Their integration into traditional brokerage accounts and retirement portfolios underscores their long-term potential. Still, current conditions suggest a cautious stance dominates trading strategies.

Technical signals add to the uncertainty. Analysts warn that Bitcoin’s recent wedge breakdown and double top pattern could push prices toward $99,000–$100,000 if selling pressure continues. At the same time, declining whale activity points to profit-taking near recent highs.

Meanwhile, macroeconomic factors, such as potential U.S. interest rate cuts and rising global money supply, could provide a counterbalance, offering support for digital assets in the medium term.

For now, though, both institutional and retail investors appear to be stepping back, leaving the crypto market at a critical crossroads between short-term bearish momentum and long-term structural growth.