Bitcoin spot exchange-traded funds (ETFs) suffered a massive $357.6 million net outflow on Monday, marking the largest single-day capital exodus since November 2025. The sell-off came amid a sharp decline in Bitcoin's hashrate and forced shutdowns of mining operations in China's Xinjiang province, amplifying bearish sentiment across the market.
Fund Exodus Details
Fidelity's Wise Origin Bitcoin Fund led the withdrawals with a $239.12 million outflow, followed by significant redemptions from Bitwise, Ark & 21Shares, Grayscale, and VanEck. The massive capital drain reduced the total net assets of Bitcoin spot ETFs from $118.27 billion at the end of the previous week to $112.27 billion, a decline of approximately $6 billion. Analysts attribute the outflow to institutional investors’ growing concern over Bitcoin's near-term price outlook and the structural risks revealed by the mining disruption.
Hashrate Crisis and Mining Shutdowns
The trigger for the sell-off was the confirmation by Nano Labs CEO Jack Kong that approximately 400,000 mining machines were forcibly shut down in Xinjiang. This sudden halt caused the Bitcoin network's hashrate to drop by 8% in 24 hours — the steepest single-day decline in recent months. The hashrate collapse raised fears about network security and miner profitability, especially in the post-halving environment, where lower hashrate could compress mining margins and increase centralization risks.
Price Volatility and Market Impact
Bitcoin's price fell over 5% during the overlap of London and New York trading hours, hitting an intraday low of $85,140 before recovering to around $86,010. Despite the partial rebound, the sustained ETF outflows suggest that traditional capital channels remain skeptical about current valuations. This outflow is part of a broader trend: multiple trading days in the prior week also saw hundreds of millions of dollars in net redemptions, indicating consistent pressure from institutional players.
Outlook and Risks
The convergence of a sharp hashrate decline and heavy ETF outflows could exert further downward pressure on Bitcoin prices in the short term. However, some market participants believe the mining shutdowns may be a localized regulatory crackdown rather than a permanent change. Once the disruption subsides, hashrate could gradually recover. Investors should watch for potential oversold opportunities but remain cautious about regulatory uncertainties surrounding mining activities. The ongoing ETF redemption wave underscores traditional finance's sensitivity to crypto market instability — a dynamic that will continue to shape Bitcoin's trajectory as it navigates macroeconomic headwinds and evolving industry fundamentals.