Bitcoin ETFs took a $277.5 million hit this week after the cryptocurrency's price slid below $80,000, snapping a five-day run of inflows. The reversal was led by two of the biggest names in the space: Fidelity and BlackRock. Morgan Stanley, meanwhile, kept its Bitcoin ETF holdings steady — a rare pocket of resilience in an otherwise red day for the funds.
Fidelity and BlackRock lead the outflows
Fidelity and BlackRock were the heaviest sellers. Combined, the two asset managers accounted for the bulk of the $277.5 million that left spot Bitcoin ETFs on Tuesday, according to data compiled by the firms. The exact breakdown per issuer wasn't immediately available, but sources close to the funds said the outflows were concentrated in their flagship products. The sell-off marked the first day of net redemptions since last Wednesday, ending a stretch where investors had poured money in almost daily.
Morgan Stanley bucks the trend
Not everyone bailed. Morgan Stanley's Bitcoin ETF holdings stayed resilient — the bank didn't trim its positions even as the broader market pulled back. That's notable because Morgan Stanley was one of the first major wealth managers to offer Bitcoin ETFs to its clients earlier this year. The firm's decision to hold suggests some institutional investors see the dip as temporary, or at least not worth the cost of selling. A spokesperson for Morgan Stanley declined to comment on the specific trades.
What the outflows say about sentiment
The timing isn't great for ETF issuers. After five straight days of inflows, the sudden reversal shows how quickly momentum can shift when Bitcoin drops through a psychological level like $80,000. The price itself has been volatile, bouncing around that mark for the past week. The outflows suggest some short-term traders are locking in profits or cutting losses, while longer-term holders like Morgan Stanley appear to be sitting tight. The question now is whether the selling continues or if buyers step back in at these levels. The next few days should provide an answer.
