Bitcoin ETFs record largest outflow in 2 weeks with $194.6 million

Source: PortaldoBitcoin Original Title: Bitcoin ETFs lose $194 million in biggest outflow in 2 weeks Original Link: Spot Bitcoin ETFs recorded their biggest outflows in two weeks, with $194.6 million leaving these funds on Thursday (4). BlackRock’s IBIT, currently the world’s largest Bitcoin ETF by market capitalization, accounted for most of Thursday’s outflows, bleeding $113 million, according to available data.

Bitcoin ETFs had lost $14.9 million on Wednesday (3), but had posted five consecutive days of positive inflows in the days prior.

The news comes as Bitcoin experiences a slight drop, falling 2.1% over the past 24 hours to $91,204. Over the past seven days, it’s down just 0.7%—though it is still down 10.5% for the month, according to CoinGecko data.

What’s causing the outflows?

Yesterday’s outflows may be a sign that investors are unwinding their leveraged positions and what’s known as basis trades, according to market analysts.

In financial markets, basis trades occur when institutions like investment banks or hedge funds buy spot Bitcoin ETFs while simultaneously shorting Bitcoin via futures or other instruments, seeking to lock in a low-risk profit. Analysts have also pointed to basis trades as the reason for significant Bitcoin ETF outflows in recent months.

Rajiv Sawhney, head of International Portfolio Management at Wave Digital Assets International, agrees that much of the selling pressure comes from institutions trying to unwind their basis trades—but believes this process is coming to an end.

“A correction was inevitable, and we will slowly consolidate upward as we enter the new year,” he added.

Analysts also highlighted other macroeconomic factors as possible reasons for ETF liquidations this week.

“Markets are increasingly pricing in a possible interest rate hike by the Bank of Japan on December 19.”

This could put pressure on the “yen carry trade”—a strategy where traders borrow cheap money in Japan, where interest rates are low, to make trades elsewhere. Analysts noted that in August 2024 and February 2025, Bitcoin saw brief 20% drops and increased ETF outflows during similar concerns about the yen carry trade environment.