Standard Chartered warns of further ETF outflows that could bring bitcoin price lower

Standard Chartered has warned that continued outflows from spot bitcoin exchange-traded funds (ETFs) could drive the cryptocurrency’s price lower. This follows one of the largest single-day ETF outflows on record, with nearly $1 billion sold off, extending the trend of significant outflows over the past few weeks.

Standard Chartered Global Head of Digital Asset Research Geoff Kendrick emphasized the scale of the outflows, noting that out of 12 spot bitcoin funds, 10 reported net withdrawals. Fidelity's FBTC fund led the outflows with $344.65 million on Tuesday, followed by $164.3 million in outflows from BlackRock's IBIT fund, according to data from SoSoValue. 

"I do not think the sell-off is over yet," Kendrick said in an email. He estimated that net ETF purchases since the U.S. election are now at a loss of approximately $1.3 billion. "The average purchase price since then using daily bitcoin closing prices is $97,000," he added.

Retail investors behind driven', analysts say

Despite the ETF outflows, analysts pointed to retail investors as a major driver behind Tuesday's crypto sell-off. Nansen Principal Research Analyst Aurelie Barthere noted that open interest in CME bitcoin futures showed little change, indicating limited institutional unwinding.

RedStone COO Marcin Kazmierczak echoed this sentiment, stating, "from the looks of it, the sell-off appears to be to a large part retail-driven, with CME open interest showing no significant variance."

Despite the volatility, Kazmierczak noted that bitcoin’s price has remained relatively stable, suggesting that supply and demand dynamics are not experiencing significant imbalances. "For long-term investors—those who actually care about fundamentals—this is an incredible time to be in the market," he added.