Bitcoin ETFs Face $90 Million Outflows as Institutional Demand Narrows

U.S. crypto exchange-traded funds (ETFs) faced significant outflows on Monday, with bitcoin ETFs leading the retreat. Bitcoin funds recorded $89.90 million in net outflows, driven primarily by withdrawals from Ark & 21Shares' ARKB and Fidelity's FBTC. Despite the broad sell-off, BlackRock's IBIT continued to attract institutional investors, pulling in $69.85 million. The divergence highlights a selective institutional appetite, with some funds experiencing strong demand while others face persistent selling pressure.

Ether ETFs extended their losing streak to five consecutive sessions, with $50.76 million in outflows. BlackRock's ETHA and Fidelity's FETH saw the largest withdrawals, reflecting a cooling in institutional positioning. Trading activity dropped to $528.09 million, and net assets closed at $17.69 billion, marking a stark contrast to the stronger demand seen for bitcoin funds in recent weeks.

Smaller cryptocurrencies also felt the pressure, with Solana and Zcash ETFs posting outflows. Solana ETFs lost $9.25 million, while Zcash ETFs saw $3.57 million in withdrawals. The HYPE ETF also moved lower, losing $2.71 million. Notably, NEAR was the only exception, with Bitwise's NRR attracting $539,640 in inflows. The session's flow pattern suggests a narrowing risk appetite among investors, favoring selective opportunities over broad-based exposure.