Bitcoin ETFs lose $194 million in largest outflow in 2 weeks

Source: PortaldoBitcoin Original Title: Bitcoin ETFs lose $194 million in largest outflow in 2 weeks Original Link: Spot Bitcoin ETFs recorded their largest outflows in two weeks, with $194.6 million leaving these funds on Thursday [image]4(. The IBIT, the world’s largest Bitcoin ETF by market capitalization, accounted for most of yesterday’s outflows, bleeding $113 million, according to data from Farside Investors.

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

The news comes as Bitcoin registers a slight drop, falling 2.1% in the last 24 hours to $91,204. Over the past seven days, it has dropped only 0.7%—although it is still down 10.5% for the month.

What is causing the outflows?

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

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

Some portfolio management specialists agree that much of the selling pressure comes from institutions trying to unwind their basis trades—but they believe this process is coming to an end.

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

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

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

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