Are Spot Bitcoin ETFs In Trouble? $795M Outflows Spark Panic Among Investors
Investor sentiment toward digital assets deteriorated further last week, with $795 million pulled from crypto investment products—raising red flags over the stability of spot Bitcoin ETFs.
It marks the third consecutive week of outflows, according to CoinShares—suggesting a broader shift in market mood rather than a short-term correction.
Since early February, net outflows have ballooned to $7.2 billion, nearly wiping out all of the year’s inflows. What’s left is a thin $165 million in net gains, highlighting just how fragile confidence has become.
While prices rebounded slightly late in the week, assets under management (AuM) still hovered around $130 billion as of April 12—marking the lowest levels since November 2024.
“This sharp reversal reflects growing unease over inflation, regulatory noise, and looming liquidity risks,” one strategist at CoinShares explained.
Bitcoin Takes the Biggest Hit—But Still Holding YTD Gains
Unsurprisingly, Bitcoin bore the brunt of the latest redemptions. Funds tied to BTC saw $751 million in outflows. Still, there’s a silver lining: Bitcoin remains in the green for the year, with $545 million in net inflows—proof that big players haven’t completely lost faith.
Ethereum wasn’t as lucky, shedding $37.6 million last week. Altcoins like Solana, Aave, and Sui also posted losses, but on a smaller scale.
Interestingly, even short-Bitcoin products—designed to profit when prices fall—weren’t spared. They logged $4.6 million in outflows, which suggests investors aren’t just bearish—they’re backing away from crypto altogether.
A few bright spots did emerge:
- XRP saw $3.5 million in inflows
- Ondo Finance added $460K
- Algorand and Avalanche brought in $250K each
These gains, while minor, hint that some investors are still selectively buying into altcoins—just not with the same conviction.
Tariffs, Tensions, and a Market on Edge
The bigger picture? It’s messy. U.S.–China tensions are heating up again, with the White House slapping a 145% tariff on Chinese imports. Beijing retaliated with its own 125% hike, and just like that, global recession fears are back in the headlines.
That’s a tough backdrop for Spot Bitcoin ETFs. Just a few months ago, they were hailed as the bridge between crypto and Wall Street. Now, they’re facing their first real stress test as volatility picks up and investor appetite fades.
Bitcoin Price Watch: $86K Breakout or Bust?
Despite the fund outflows, Bitcoin itself is holding steady—at least for now. BTC is currently trading around $84,885 and staying above key technical support at $83,334 (50-period EMA). Momentum is slowly rebuilding, with the RSI climbing toward 58.
Key resistance: $86,110
Breakout target: $88,567
Support zone: $83,243–$83,334
Beginner Trade Setup:
Entry: Buy above $86,150 (breakout confirmation)
Target: $88,000–$88,567
Stop Loss: $83,200
For those new to trading, patience is key here. Wait for a solid breakout with strong volume before jumping in. Otherwise, you risk getting caught in a fakeout.
Final Take
With nearly $8 billion in outflows since February and sentiment clearly on edge, Spot Bitcoin ETFs are in a vulnerable spot. If macro conditions worsen or investor confidence doesn’t bounce back soon, more pain could be on the way.
But for now, Bitcoin is holding its ground—and if it can break above $86K with volume behind it, the bulls might just have one more leg up left in them.
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