Bitcoin ETFs swing back to net outflows as $636 million in withdrawals erase previous day’s inflows

U.S. spot Bitcoin (BTC) exchange-traded funds reversed Wednesday's net inflows as $635.6 million exited the ETFs on Thursday in the largest daily outflows since June.BlackRock's IBIT led Thursday's net outflows with $254.1 million, followed by Fidelity's FBTC with $217.5 million and Ark Invest/21Shares' ARKB with $109.4 million, according to data compiled by The Block. Bitwise's BITB and Grayscale's GBTC also witnessed net outflows, while Morgan Stanley's MSBT bucked the trend to add $2.3 million. The remaining ETFs posted zero flows for the day.Morgan Stanley's Bitcoin ETF, though far younger than most of the other products, having only launched in April this year, has witnessed just one day of net outflows so far.Nevertheless, the Bitcoin ETF flows remain positive for the week at $442.7 million, having added $526.7 million on Monday, $23.2 million on Tuesday, and $528.4 million on Wednesday.Before Thursday's reversal, Lorris Beziers, senior DeFi analyst at Tesseract Group, had pointed to the earlier inflows as a sign of continued ETF demand despite broader market weakness. The next test was whether ETF inflows continued while bitcoin held the $80,000 to $81,000 range, he told The Block. "If inflows fade and that floor breaks, the demand picture has weakened," Beziers said.Since the Bitcoin ETFs first launched in January 2024, the funds have generated more than $57 billion in combined net inflows, with more than $100 billion in assets under management, according to The Block's ETF Tracker page.Meanwhile, U.S. spot Ethereum ETFs also returned to net outflows on Thursday, with a collective $110.6 million exiting the funds after adding $14.9 million the day before. Solana and Hyperliquid ETFs also witnessed net outflows for the day, while XRP funds were an outlier, adding $3.6 million.Bitcoin slides as tech stock sell-off spreadsBitcoin (BTC) slid back to around $81,500 earlier on Friday, dropping 3.4% in the past day as a Wall Street sell-off extended to Asian equities amid weak tech earnings, concerns over AI spending, and escalating geopolitical tensions.The Nasdaq Composite closed down 2.6% on Thursday, posting its worst session since June, while the S&P 500 saw its worst daily performance since July, down 1.2%. Meanwhile, at least $440 million in leveraged crypto positions were liquidated over the past 24 hours, including $397 million worth of longs, according to CoinGlass data.Jeff Anderson, head of U.S. at STS Digital, told The Block that bitcoin remains closely tied to technology stocks, with concerns over AI valuations and debt weighing on the market."We do not read a lot into this move, with $80K/$86K being the recent channel as we watch for a breakout of those levels," Anderson said.Despite the broader market weakness, Nick Forster, founder and CEO of Derive and former Susquehanna options trader, told The Block that the platform's implied probability of bitcoin exceeding $100,000 by Christmas had risen from 9.7% to 12% over the past week, while the probability of a drop below $70,000 fell from 15.6% to 11%."What they show is that traders have increased their exposure to year-end upside while reducing their spending on crash protection," Forster said.