Wall Street’s Crypto Engine Loses Power as ETF Flows Reverse

Bitcoin ETF inflows — once a steady drumbeat of demand — are vanishing. For a market that treats those signals as gospel, the shift is stoking fears the crypto downdraft has further to go.

Investors yanked nearly $1 billion from ETFs tracking Bitcoin during the latest session, the second-biggest daily outflow on record for the group of 12 funds, according to data compiled by Bloomberg. BlackRock Inc.’s Bitcoin fund (ticker IBIT) suffered a $355 million exodus, followed by Grayscale’s GBTC and Fidelity’s FBTC, which shed nearly $200 million each. The cohort is also on track to post its worst weekly outflow since February.