Spot Bitcoin ETFs Experience $1.62B Outflows Amid Volatility

U.S. spot Bitcoin exchange-traded funds recorded a fourth consecutive day of net outflows on Thursday, totaling $1.62 billion over four trading days, according to SoSoValue data. The streak began last Friday with a $394.68 million withdrawal and continued through Thursday, with Wednesday seeing the largest redemption at $708.71 million. Institutional investors are reducing exposure as the yield on the Bitcoin basis trade—a strategy exploiting price differences between spot and futures markets—has fallen below 5%, down from 17% a year ago. Matt Hougan, chief investment officer of Bitwise, told Decrypt that hedge funds are pulling back due to diminished profitability. Bitcoin is currently trading at $89,500, down 5.4% this week, amid broader market risk-off sentiment. Prediction market Myriad shows users assigning a 30% chance of Bitcoin dropping to $69,000, up from 11.6% last week. Market observers link the decline to reduced institutional interest and macroeconomic uncertainty. Investor outlook hinges on potential shifts in Federal Reserve policy or improved trade profitability. A dovish Fed appointment could restore risk appetite, while retail investor enthusiasm may reignite the basis trade. Despite short-term volatility, Bitwise remains optimistic about long-term growth driven by financial advisors. [News Publication Time] 2026-01-23 15:55 UTC