U.S. Bitcoin ETFs Experience Record Outflow Exceeding $930 Million

On Tuesday, the crypto market faced significant declines, with bitcoin dropping to three-month lows below $87,000. This downturn led to substantial withdrawals from U.S.-listed spot bitcoin exchange-traded funds (ETFs).

• Spot ETFs experienced a net outflow of $937.78 million, marking the largest single-day redemption since their inception in January 2024.
• Fidelity's FBTC recorded the highest outflow at $344.65 million, followed by BlackRock's IBIT with $164.37 million.
• Other funds had outflows under $100 million each.

The decline in ETF interest correlates with reduced premiums in CME-listed bitcoin futures, affecting the attractiveness of cash and carry arbitrage strategies. The annualized one-month basis for CME bitcoin futures fell to 4%, the lowest in nearly two years, down from approximately 15% in December. Ether futures similarly dropped to around 5%, with spot ether ETFs seeing $50 million in outflows on the same day.