Bitcoin ETFs See $536 Million in Outflows as BTC Wilts Below $110K

Core Insights - U.S.-listed crypto ETFs experienced significant outflows, marking the end of a two-week inflow streak, with bitcoin ETFs alone seeing a net outflow of $536.4 million and ether ETFs losing $56.8 million [1][2] Group 1: ETF Performance - The iShares Bitcoin Trust (IBIT) from BlackRock faced outflows of $29 million, while Fidelity's FBTC saw a loss of $132 million, and Grayscale's GBTC product lost $67 million, indicating a broad trend of redemptions across various issuers [2] - Smaller issuers like Bitwise and VanEck also reported outflows, contributing to the overall negative sentiment in the ETF market [2] Group 2: Market Dynamics - The recent outflows were attributed to a volatile fortnight where bitcoin prices fell from $126,000 due to leveraged liquidations, issues with Binance's data feeds, and escalating U.S.-China trade tensions [2] - Analysts at Citi noted that the drawdown reflects bitcoin's increasing sensitivity to equity market movements, while Glassnode characterized the sell-off as a "necessary reset" following significant futures deleveraging [3] Group 3: Future Outlook - Despite the recent volatility and outflows, Citi maintained its year-end target for bitcoin at $133,000, supported by resilient ETF participation, a sentiment echoed by prediction markets [4]