The highly anticipated White House Crypto Summit failed to ignite bullish momentum in institutional crypto investment, as Bitcoin exchange-traded funds (ETFs) recorded their fourth consecutive week of outflows. Data shows that over $4.5 billion in net assets have exited the market in the past month, signaling cautious sentiment among institutional investors.
Bitcoin ETF Outflows Continue Amid Institutional Uncertainty
According to SoSoValue, US Bitcoin ETFs faced net outflows of $799.39 million this week, marking five consecutive days of negative flows. The largest single-day outflow occurred on Friday, with a staggering $409 million withdrawn from Bitcoin ETFs.
Notably, Ark Invest’s ARKB and Fidelity’s FBTC ETFs led Friday’s losses, recording negative flows of $160 million and $154.9 million, respectively. BlackRock’s IBIT and Grayscale’s GBTC followed with outflows of $39.9 million and $36.5 million. Meanwhile, most other issuers saw zero net flows, except Bitwise (BITB), which remained stable.
Ethereum ETFs were not spared from the downturn, logging their second consecutive week of net outflows. This continued decline raises concerns about institutional confidence in the broader crypto market, despite growing mainstream adoption.
Macroeconomic Concerns Overshadow Market Optimism
The market downturn comes as a surprise, given that expectations were high for a bullish shift following the White House Crypto Summit. However, macroeconomic concerns, including fears surrounding President Donald Trump’s proposed trade tariffs and broader financial instability, appear to have overshadowed the event’s impact.
Industry analysts suggest that structural market shifts are also contributing to the capital flight. Kyle Chasse pointed out that hedge funds have been leveraging a low-risk arbitrage trade between Bitcoin spot ETFs and CME futures. As these trades unwind, liquidity is drained from the market, accelerating sell-offs and ETF outflows.
QCP Capital Highlights Market Reaction
QCP Capital’s latest report sheds light on Bitcoin’s sharp price drop from $90,000 to $85,000 following President Trump’s executive order establishing the Strategic Bitcoin Reserve and US Digital Asset Stockpile. Analysts labeled the reaction as a classic “sell the news” event, as traders who positioned for a bullish outcome found themselves liquidating their holdings instead.
“The knee-jerk reaction lower likely stems from the realization that no actual budget has been allocated for BTC purchases in the near term,” noted QCP Capital.
Also Read: Trump’s Executive Order: U.S. Establishes Bitcoin Reserve and Digital Asset Stockpile
With institutional investors remaining on the sidelines, Bitcoin ETFs could continue facing outflows unless market conditions stabilize. For now, macroeconomic factors and strategic market positioning appear to be the primary drivers of the ongoing liquidity drain in the crypto investment space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
