US Bitcoin ETFs See $258M in Net Inflows While Institutions Dump 25,000 BTC in Q4
Spot Bitcoin ETF inflows in the United States returned to positive territory on Tuesday, as Fidelity and BlackRock drove the rally amid ongoing bearish market conditions.
US spot Bitcoin exchange-traded fund inflows returned to positive territory on Tuesday while Bitcoin's price made an attempt at a moderate climb back to $65,000, bringing an end to a streak of consecutive daily outflows.
According to data from SoSoValue, spot Bitcoin (BTC) ETFs saw net inflows totaling $257.7 million, representing the highest single-day figure recorded since the beginning of February.
The influx successfully reversed Monday's net outflows of $203.8 million, bringing weekly flows back above zero following five straight weeks of net withdrawals that totaled $3.8 billion.
Notwithstanding the positive turnaround, overall market conditions continue to exhibit weakness, with market observers calculating that approximately half of the Bitcoin supply currently in circulation is trading below cost basis, further complicated by data showing significant institutional liquidation during the fourth quarter of 2025.
From the start of 2026, the combined assets under management across US spot Bitcoin ETFs have declined by 30.5%, falling from approximately $117 billion down to $81.3 billion.
Fidelity leads inflows, with BlackRock close behind
The Fidelity Wise Origin Bitcoin Fund (FBTC), Fidelity Investments' spot Bitcoin ETF product, captured the largest inflows on Tuesday with close to $83 million, based on data from Farside.
The iShares Bitcoin Trust ETF (IBIT) from BlackRock came in second place, attracting $79 million in fresh capital.
Total cumulative net inflows stayed above the $54 billion mark following a peak that exceeded $62 billion in October 2025, suggesting that a substantial number of investors have maintained their positions.
Institutions sold 25,000 BTC in Q4 2025
James Seyffart, an ETF analyst at Bloomberg, disclosed on Tuesday that institutional market participants, primarily advisors and hedge funds, liquidated a combined total of 25,000 Bitcoin throughout the fourth quarter of 2025.
This quantity, valued at approximately $1.6 billion based on prevailing market prices, constitutes a relatively modest percentage of Bitcoin's overall $1.3 trillion market capitalization. According to Seyffart's analysis, these institutional entities continue to maintain holdings of approximately 311,700 BTC.
Several market analysts have also highlighted that close to 9 million BTC, representing 45% of the entire circulating supply, is presently underwater, meaning it trades below the acquisition price paid by current holders.
Matt Hougan, who serves as chief investment officer at Bitwise, suggested this situation demonstrates Bitcoin's continuing progression from purely speculative activity toward becoming a more mature asset.
You can't jump from 100% to 0% speculation without moving through every stage in between.
Matt Hougan, Bitwise Chief Investment Officer