Bitcoin ETFs recorded their second-worst day on record with $866 million in outflows, deepening the market downturn even as the U.S. government shutdown officially came to an end. Analysts say the pullback may signal shifting market structure, but some remain confident the long-term trend is still intact.
ETF Outflows Accelerate as Shutdown Ends
Demand for crypto investment products continued to weaken on Thursday, with U.S. spot Bitcoin ETFs posting a staggering $866 million in net outflows. According to Farside Investors, this marks the second-largest daily withdrawal since February 25, 2025, when outflows hit $1.14 billion.
The reversal came immediately after President Donald Trump signed the long-delayed government funding bill, ending a 43-day shutdown. Despite expectations that market clarity would boost ETF interest, investor appetite failed to rebound — instead reinforcing concerns about deteriorating sentiment.
Market Confidence Wavers as Bitcoin Hits Six-Month Low
The ETF slump contributed to Bitcoin sliding to fresh six-month lows, raising fears that the 2025 momentum may be running out of steam. Analysts note that spot ETFs had been the primary fuel behind Bitcoin’s major rallies this year, alongside Michael Saylor’s accumulation strategy.
Yet some market watchers warn against calling a bear market prematurely. CryptoQuant CEO Ki Young Ju highlighted that Bitcoin’s broader uptrend remains structurally intact unless BTC trades decisively below $94,000 — the key cost basis for mid-term holders. He stressed the need for patience rather than panic in the current environment.
Analysts Say Market Structure Has Fundamentally Shifted
Other analysts argue that the traditional four-year cycle framework no longer applies. With the introduction of Bitcoin ETFs and a new U.S. administration shaping regulatory expectations, the market is moving into uncharted territory.
Bitwise CEO Hunter Horsley suggested that the market may have already been in a quiet downturn for nearly six months — and could be approaching the final phase. Despite the short-term turbulence, Horsley believes the broader backdrop for crypto “has never been stronger,” pointing to deepening institutional infrastructure and regulatory clarity.
XRP ETF Surges Past All 2025 Launches, Signaling Altcoin Demand
While Bitcoin ETFs struggle, altcoin-focused funds are beginning to shine. The newly launched Canary Capital XRP (XRPC) ETF became the strongest ETF debut of 2025 — surpassing both crypto and traditional market launches.
According to Bloomberg’s Eric Balchunas, the XRP ETF recorded $58 million in first-day volume, narrowly surpassing the BSOL ETF’s $57 million. The strong start indicates that investor appetite for regulated altcoin exposure remains active despite Bitcoin-led volatility.
Ether ETFs experienced $259 million in outflows on Thursday, but the Solana ETFs maintained an impressive streak — pulling in $1.5 million to extend their 13 consecutive days of inflows.
Crypto Sentiment Remains Divided, but Outlook Holds Opportunities
The sharp drop in ETF demand has clearly rattled markets, especially as Bitcoin hovers near critical support. Yet the rise of alternative crypto ETFs and institutional progress suggests the ecosystem is still expanding beneath the surface.
Whether this marks the early stabilizing phase of a new cycle — or the continuation of a deeper correction — remains the central debate. For now, analysts agree that the coming weeks will be decisive for Bitcoin’s trajectory as ETF dynamics continue to influence liquidity and sentiment.