On Thursday, the US spot Bitcoin ETF market experienced a wave of intense sell-offs. The net outflow for the day reached $194.6 million—marking the most severe loss in the past two weeks.



Who led the capital exodus? BlackRock’s IBIT fund topped the list with a single-day outflow of $112.9 million. Fidelity’s FBTC followed closely, losing $54.2 million. Products from VanEck, Grayscale, and Bitwise weren’t spared either, all seeing net outflows across the board.

According to data tracked by SoSoValue, there’s a key reason behind this round of capital flight. Nick Ruck, Research Director at LVRG Research, pointed out: “Basis trading” is being continuously unwound. In plain language—when the spread between futures and spot narrows below the breakeven line, arbitrage players are forced to cut their positions and exit, which further drains liquidity in an already volatile market.

Nick added that everyone is now watching two things: the latest US inflation data and the Federal Reserve’s rate decision on December 10. “If the Fed actually cuts rates by 25 basis points and sends out some dovish signals, market sentiment might stabilize.”

Timothy Misir, Head of Research at BRN, observed using CryptoQuant and Glassnode data that currently, the Bitcoin holdings across major exchanges...
BTC-4.46%
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