U.S. spot bitcoin exchange-traded funds (ETFs) saw a sharp wave of withdrawals on Thursday, with total net outflows reaching $536.4 million — the largest single-day decline since August 1, according to data from SoSoValue.
Out of 12 active bitcoin ETFs, eight recorded outflows. The Ark Invest and 21Shares Bitcoin ETF (ARKB) led the decline, losing $275.15 million, followed by Fidelity’s FBTC, which shed $132 million. Funds managed by BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie also reported significant withdrawals.
Spot Ethereum ETFs were not spared, seeing $56.9 million in net outflows — reversing the positive momentum from earlier in the week.
Analysts attributed the selloff to a surge in risk aversion across financial markets.
“The $536 million in net outflows primarily reflects a sharp surge in investor risk aversion,” said Nick Ruck, director at LVRG Research. “This caution is likely driven by macroeconomic pressures, such as evolving U.S. tariff policies, and a broader market deleveraging event that has triggered significant liquidations across crypto assets.”
The trend follows a historic crypto liquidation event last week, during which more than $20 billion in leveraged positions were wiped out, affecting over 1.5 million traders. Analysts linked the mass selloff to U.S. President Donald Trump’s announcement of 100% tariffs on Chinese imports, which rattled global markets and pushed traders away from risk assets like cryptocurrencies.
This is likely the largest liquidation event, in $ terms, in crypto history. pic.twitter.com/NcpTnSISOr
— CRG (@MacroCRG) October 10, 2025
Market analysts say the heavy ETF outflows highlight growing short-term fragility. “I believe we're witnessing a market that ‘wants’ to stabilize,” said Justin d'Anethan, Head of Research at Arctic Digital. “It’s still grappling with two unresolved forces: uncertainty around the geopolitical path and the lingering pressure of restrictive monetary policy that hasn’t quite flipped yet.”
Crypto prices continued to slide Friday, with bitcoin falling 2.36% to $108,360 and ether dropping 2.56% to $3,900, based on data.
Despite the volatility, analysts maintain a cautiously optimistic long-term view.
“Structurally, the inflation story is softening, and central banks are nearing their pivot point,” d’Anethan added. “But until we see clearer confirmation from inflation data, policy updates, or diplomatic progress, volatility will likely remain high.”
