U.S. spot crypto exchange-traded funds witnessed more than half a billion dollars in net outflows on Thursday, while separate data indicated spot Bitcoin ETFs shed roughly $1 billion in a single day as markets reversed initial post-election gains. Major U.S. crypto ETFs have now posted combined net outflows of more than $1.1 billion so far this week.
Spot Bitcoin ETFs were at the center of the selloff. Fidelity’s FBTC led Thursday’s redemptions with $199.9 million, followed by BlackRock’s IBIT with $105 million and Grayscale’s GBTC with $49.9 million. Franklin Templeton’s EZBC, VanEck’s HODL, and Ark Invest’s ARKB also saw net outflows, while the remaining Bitcoin ETFs recorded zero flows.
Ethereum funds were also hit hard. BlackRock’s ETHA and ETHB saw $75.2 million and $22 million in redemptions respectively, while Fidelity’s FETH and Grayscale’s ETHE also registered outflows. Outside the majors, U.S. Solana ETFs lost a combined $1.2 million, Zcash ETFs lost $11 million, and Hyperliquid ETFs lost $3 million. XRP ETFs were the only outlier, posting zero net flows for the day.
The ETF redemptions coincided with sharp price declines across crypto markets. Bitcoin briefly fell to around $75,200, its lowest level since mid-September, after dropping 5.6% on Thursday. Ethereum slid 7.8% to $2,206. The GMCI 30 index, which tracks a basket of top cryptocurrencies, fell 6.4%.
Derivatives markets showed aggressive deleveraging. More than $1.2 billion in crypto positions were liquidated over 24 hours, with long liquidations accounting for about $1.1 billion. Bitcoin open interest declined 1.78%, signaling that traders were actively reducing risk exposure.
The pressure was not limited to crypto. The Nasdaq Composite fell 5.5% and the S&P 500 dropped 4.4% as investors weighed potential restrictions on AI infrastructure spending after Democrats took control of both chambers of Congress. Capital.com senior analyst Kyle Rodda said the Democratic sweep added to concerns about the AI investment boom, while IG’s Axel Rudolph noted bitcoin had been “dragged into the AI rout” as investors rapidly unwound risk.
Looking ahead, traders are watching Friday’s U.S. jobs report. Economists expect roughly 60,000 to 65,000 new jobs. A stronger print with faster wage growth could push Treasury yields and the dollar higher, adding more pressure on risk assets. Bitwise’s André Dragosch said bitcoin may still outperform U.S. equities if financial conditions improve, as the cryptocurrency is more sensitive to the dollar and monetary policy expectations than to economic growth.
