Bitcoin exchange-traded funds (ETFs) have experienced significant outflows. This keeps the cycle going and ensures that cryptocurrencies remain within the volatile asset class. When the fraudulent cryptocurrency exchange FTX collapsed in 2022, it led to a withdrawal of excess liquidity from cryptocurrency markets, and the price of Bitcoin fell by about 30% from its all-time high in early October 2025. Such a move is usually preceded by indirect investors (in securities and investment funds), who sell off their holdings or liquidate their positions to exit quickly, either to take profits or to avoid losses.
