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Outflows from Spot Bitcoin ETFs Continue as Investors Seek Safer Assets
Spot Bitcoin ETFs have been experiencing significant outflows in recent days, with some of the largest funds witnessing their biggest daily withdrawals since February. This trend is consistent with a broader market shift towards safer assets amid rising trade tensions and market volatility.
The unprecedented $5 trillion loss in the S&P 500 over two days following U.S. President Donald Trump’s announcement of new tariffs has led to an increased sense of risk aversion among institutional investors. As a result, spot Bitcoin ETFs have seen substantial redemptions, with some funds experiencing their largest daily outflows since February.
The impact is being felt across the board, with other major ETFs such as Grayscale’s GBTC, Ark Invest’s ARKB, and Bitwise’s BITB also reporting significant withdrawals. This broader trend of institutional risk aversion is a stark departure from earlier this year when Bitcoin was experiencing unprecedented inflows.
However, Bitcoin’s 24/7 liquidity mechanics may have played a role in the weekend downturn as investors sought to de-risk their portfolios outside of standard trading hours. Analysts suggest that the correlation between Bitcoin and traditional markets appears to be shifting, with some arguing that Bitcoin’s resilience in recent days indicates a growing conceptual influence.
The industry is divided on the impact of this new trend. Some believe that Bitcoin’s growing influence could strengthen its role as a strategic reserve asset, providing an attractive alternative to traditional financial instruments. Others caution that Bitcoin remains fundamentally tied to global liquidity conditions and vulnerable to broader economic pressures.
As the crypto market navigates this shifting landscape, it is essential to consider whether Bitcoin can maintain its appeal as a hedge against economic instability in the face of continued outflows from spot ETFs.
Source: https://crypto-economy.com/outflows-from-spot-bitcoin-etfs-continue-as-investors-seek-safer-assets/
