Bitcoin ETF outflows reached $866 million on Thursday despite the end of the 43-day US government shutdown, marking the second-worst day for these funds and pushing BTC prices to a six-month low amid concerns over waning investor demand.
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US spot Bitcoin ETFs experienced $866 million in net outflows, the second-highest single-day total after February’s record.
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The 43-day government shutdown ending failed to reverse the trend of declining demand for crypto-linked investments.
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Bitcoin’s price fell to a six-month low, with experts noting that the bull market remains intact above $94,000, per data from CryptoQuant.
Bitcoin ETF outflows hit $866M as US shutdown ends, signaling market concerns. Explore impacts on BTC prices and emerging altcoin ETF demand for insights into 2025 crypto trends.
What Caused the Massive Bitcoin ETF Outflows in 2025?
Bitcoin ETF outflows surged to $866 million on Thursday following the resolution of the 43-day US government shutdown, as investor appetite for spot Bitcoin exchange-traded funds failed to rebound. This marked the second consecutive day of net withdrawals, with the funds recording their second-worst performance since inception, according to data from Farside Investors. The outflows, occurring just one day after President Donald Trump signed a funding bill extending government operations until January 30, 2026, highlight persistent challenges in crypto market sentiment despite positive political developments.
Bitcoin ETF flows (in USD, million). Source: Farside Investors
The decline in demand for Bitcoin and related investment vehicles underscores broader market dynamics, where these ETFs had previously fueled much of Bitcoin’s upward momentum throughout 2025. Analysts point to a combination of macroeconomic uncertainties and shifting investor priorities as key factors, though the core infrastructure of the bull market appears resilient for now.
How Are Bitcoin ETF Outflows Impacting Market Structure?
The substantial outflows from US spot Bitcoin ETFs are raising alarms about the evolving structure of the cryptocurrency market, particularly as these funds have become central to institutional participation. Data from Farside Investors shows this $866 million withdrawal as a stark contrast to earlier inflows that propelled Bitcoin’s price gains, contributing to a drop in BTC value to its lowest level in six months. Crypto investors are voicing concerns over sustained demand, given that Bitcoin ETFs, alongside strategies from prominent figures like Michael Saylor, drove significant portions of the asset’s 2025 performance.
Industry experts emphasize that while short-term pressures exist, the overall bull market for Bitcoin persists unless prices breach the critical $94,000 threshold—the average cost basis for investors entering over the past six to 12 months. Ki Young Ju, founder and CEO of crypto intelligence platform CryptoQuant, stated in a recent analysis, “Personally, I do not think the bear cycle is confirmed unless we lose that level. I would rather wait than jump to conclusions.” This perspective is supported by on-chain metrics indicating that long-term holders remain committed, potentially stabilizing the market against further downside risks.
Source: Ki Young Ju
Other observers, including those tracking historical cycles, argue that traditional four-year patterns may no longer apply in light of innovations like Bitcoin ETFs and changes in US policy under the new administration. Hunter Horsley, CEO of asset management firm Bitwise, noted in a public statement, “Since the launch of the Bitcoin ETFs and new administration, we’ve entered a new market structure.” He further suggested, “I think there’s a pretty good chance that we’ve been in a bear market for almost 6 months now and are almost through it,” while adding optimism: “The setup for crypto right now has never been stronger.” These insights from established platforms like Bitwise and CryptoQuant demonstrate the depth of analysis informing current market views, underscoring the need for investors to monitor key support levels closely.
Shifting focus to alternative investments, the performance of other crypto ETFs reveals mixed signals. Ether ETFs, for instance, saw $259 million in outflows on the same day, reflecting broader altcoin pressures. In contrast, Solana ETFs attracted $1.5 million in inflows, continuing a 13-day streak of positive flows as reported by Farside Investors. This divergence highlights how specific assets within the crypto ecosystem are navigating the turbulent environment differently.
Metaplanet’s Bitcoin holdings also faced valuation declines of 39% amid October’s market crash, pressuring corporate treasury strategies and illustrating the ripple effects on institutional adopters. Similarly, discussions around Taiwan’s potential Bitcoin reserves, with a promised assessment report by the end of 2025, signal growing global interest in crypto as a strategic asset, even as short-term ETF flows wane.
Frequently Asked Questions
What Are the Latest Bitcoin ETF Outflows in 2025?
US spot Bitcoin ETFs recorded $866 million in net outflows on Thursday, the second-highest daily total after $1.14 billion in February 2025, according to Farside Investors. This occurred despite the US government shutdown ending, indicating subdued investor demand and contributing to Bitcoin’s price reaching a six-month low.
Why Did Bitcoin Prices Drop After the US Shutdown Ended?
Bitcoin prices fell to a six-month low following the 43-day US government shutdown’s resolution because ETF outflows of $866 million overshadowed the positive news, failing to restore confidence. Experts like Ki Young Ju from CryptoQuant note the bull market holds above $94,000, but current sentiment reflects caution amid structural market shifts.
Key Takeaways
- Record Outflows Signal Caution: Bitcoin ETFs saw $866 million exit despite shutdown end, marking second-worst day and highlighting demand concerns.
- Bull Market Resilience: Prices remain in bull territory above $94,000, per CryptoQuant data, with experts advising patience over panic.
- Altcoin ETF Momentum: XRP ETF debuted with $58 million volume, topping 2025 launches and indicating appetite for regulated altcoin products.
XRP ETF Launch Signals Altcoin Appetite
Amid Bitcoin’s challenges, the Canary Capital XRP ETF marked a bright spot by launching as the first US-based fund holding spot XRP tokens. Its debut volume of $58 million exceeded all other ETF launches in 2025, surpassing even Solana’s $BSOL ETF with $57 million, as noted by Bloomberg ETF analyst Eric Balchunas. This strong performance, the highest among over 900 new ETFs, underscores underlying demand for regulated altcoin investments despite broader market outflows.
Balchunas highlighted in his analysis, “Congrats to $XRPC for $58m in Day One volume, the most of any ETF launched this year… BARELY edging out $BSOL’s $57m,” emphasizing the XRP fund’s lead in a competitive field. Such developments suggest that while Bitcoin faces headwinds, investor interest in diversified crypto exposure through ETFs is growing, potentially stabilizing the sector.
Source: Eric Balchunas
The XRP ETF’s success aligns with trends in other altcoins, where Solana ETFs continue to attract inflows, pointing to selective optimism. As the crypto market adapts to new regulatory and structural realities, these ETF performances offer valuable insights into where capital is flowing next.
Conclusion
The $866 million Bitcoin ETF outflows in 2025, even after the US government shutdown’s end, reveal ongoing pressures on investor demand and Bitcoin’s market structure, with prices hitting six-month lows. Yet, the bull market endures above $94,000, as affirmed by CryptoQuant’s Ki Young Ju, while the standout XRP ETF launch highlights robust appetite for altcoin funds. Looking ahead, monitoring ETF flows and key support levels will be essential for navigating crypto’s evolving landscape—investors should stay informed on these dynamics for strategic decision-making.
