Spot Bitcoin ETFs Shed $1.62B in Four-Day Negative Streak

Group 1 - Investors withdrew a net $1.62 billion from U.S. spot Bitcoin exchange-traded funds (ETFs) over four trading days, marking one of the largest periods of net redemptions since early 2024 [1][2] - The outflows began with a $394.68 million withdrawal last Friday, followed by $483.38 million on Tuesday and $708.71 million on Wednesday, concluding with $32.11 million on Thursday [2] - The decline in institutional appetite is reflected in the Bitcoin basis trade yield, which has dropped to below 5% from 17% a year ago, indicating reduced profitability for this trading strategy [3] Group 2 - The sustained outflows from liquid crypto ETPs suggest that hedge funds are retreating from the basis trade due to decreased profitability, which can lead to rapid capital exits [4] - The macroeconomic environment has turned risk-off, with the S&P 500 index dropping nearly 54 points and Bitcoin failing to maintain momentum above $97,000, currently trading at $89,500, down 5.4% on the week [5] - Investor sentiment is increasingly bearish, with a prediction market indicating a 30% chance of Bitcoin crashing to $69,000, up from 11.6% the previous week, reflecting a broader pullback from risk across institutional portfolios [6]