Bitcoin exchange-traded funds (ETFs) in the U.S. have slipped back into outflow territory, reflecting ongoing uncertainty in the market. On February 6, spot Bitcoin ETFs saw a net outflow of $140.3 million, reversing a two-day inflow streak that had brought in $407 million. The latest data highlights the continued struggle of Bitcoin to break above the critical $100,000 level.

Fidelity’s FBTC Leads the ETF Outflows

According to data from So Value, Fidelity’s Wise Origin Bitcoin Trust (FBTC) saw the largest outflows, with investors withdrawing a hefty $103.25 million. Grayscale’s Bitcoin Trust (GBTC), which has experienced significant redemptions since its conversion to a spot ETF, followed with $42.21 million in outflows.

While most Bitcoin ETFs recorded either outflows or neutral flows, Bitwise’s BITB stood out as the only fund to register inflows, attracting $5.15 million from investors. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT), which has been a strong performer in previous sessions, reported no net flows for the day.

Despite the outflows, overall trading activity remained robust. The total trading volume for the 12 Bitcoin ETFs jumped to $2.45 billion on February 6, up from $2.04 billion recorded the previous day.

Macroeconomic Pressures Drive Bitcoin ETF Outflows

The latest Bitcoin ETF redemptions come amid heightened macroeconomic uncertainty. On February 5, a stronger-than-expected private payrolls report from ADP, the largest payroll processor in the U.S., rattled investors. The report signaled continued labor market strength, which could impact Federal Reserve policies.

Investors are now closely watching the upcoming nonfarm payrolls report, with economists forecasting a slowdown in job growth to 154,000 jobs in January—down from 256,000 the previous month.

A strong labor market poses challenges for Bitcoin and the broader crypto market, as it could influence the Federal Reserve’s stance on interest rates. With inflation still above the 2% target, the Fed may delay or scale back the two rate cuts expected in 2025. Higher interest rates generally reduce the appeal of risk assets, including cryptocurrencies and ETFs.

At the time of writing, Bitcoin is trading at $97,341, reflecting a 0.5% decline on the day.

Ethereum ETFs Defy Bitcoin’s Trend with Consistent Inflows

While Bitcoin ETFs saw outflows, Ethereum ETFs continued to attract investor interest. Spot Ether ETFs recorded their seventh consecutive day of inflows on February 6, bringing in $10.65 million. All of the inflows went into BlackRock’s ETHA ETF, while other funds remained flat.

Ethereum ETFs have seen over $500 million in inflows between January 30 and February 5, accounting for 16% of total inflows since their discovered. This rising demand for Ethereum-based investment products highlights a potential shift in investor sentiment, as traders look for alternative crypto exposure amid Bitcoin’s stagnation.

Despite this, Ethereum is facing price pressure in the spot market. At press time, ETH is trading at $2,711, down 4.1% on the day, marking a steeper decline than Bitcoin.

What’s Next for Bitcoin ETFs?

The return of outflows in Bitcoin ETFs raises concerns about whether the market can sustain bullish momentum. While Bitcoin has shown resilience in recent months, its struggle to break past $100,000 remains a psychological barrier for investors.

Market participants will be closely monitoring:

• The upcoming nonfarm payrolls report – If job data remains strong, it could signal further delays in Fed rate cuts, pressuring risk assets like Bitcoin.
• Institutional ETF flows – If ETF outflows continue, it may indicate waning institutional interest in Bitcoin at current price levels.
• Ethereum ETF performance – With Ether ETFs attracting consistent inflows, some investors may be shifting focus to alternative crypto assets.

The next few weeks could be crucial in determining whether Bitcoin ETFs regain their appeal or if further outflows are on the horizon.