Bitcoin ETFs Experience Continuous Five-Week Withdrawal Period Reaching $3.8B
Five consecutive weeks of outflows have impacted US spot Bitcoin ETFs, with $315.9 million withdrawn during the most recent week as institutions reduce risk exposure during macroeconomic turbulence.
Exchange-traded funds tracking spot Bitcoin in the United States have experienced an unprecedented five-week stretch of continuous net outflows, witnessing approximately $3.8 billion in withdrawals from investors throughout this extended period.
Throughout the most recent week, these investment vehicles witnessed approximately $315.9 million in net withdrawals, based on information compiled by SoSoValue. The most substantial weekly exodus throughout this 5-week period took place during the week that concluded on Jan. 30, during which spot Bitcoin (BTC) ETFs experienced approximately $1.49 billion in net withdrawals.
These weekly net withdrawals occurred despite certain trading sessions showing positive inflows. Last Friday witnessed Bitcoin ETFs attracting approximately $88 million in fresh capital, though these gains were overshadowed by more substantial redemption activity during earlier days of the week. Significant outflows included over $410 million on Feb. 12, accompanied by further negative trading sessions spanning from Feb. 17 to Feb. 19, ultimately pushing the weekly tally into negative territory.
As of the close of trading on Friday, spot Bitcoin ETFs have amassed approximately $54.01 billion in cumulative net inflows since their initial launch. The total net assets under management stood at approximately $85.31 billion, accounting for roughly 6.3% of the entire market capitalization of Bitcoin.
Institutional de-risking drives Bitcoin ETF outflows
The recent wave of withdrawals from spot Bitcoin ETFs seems to be connected to institutional portfolio adjustments rather than indicating a fundamental decline in long-term confidence in the digital asset, based on analysis from Vincent Liu, chief investment officer at Kronos Research. Liu indicated that these outflows are reflective of portfolio risk reduction strategies as geopolitical pressures and wider macroeconomic uncertainty continue to mount.
Liu further noted that capital flows may continue to experience volatility in the immediate future. Intensifying trade conflicts and tariff-related developments have strengthened a risk-averse sentiment throughout financial markets, rendering digital assets particularly vulnerable to macroeconomic news cycles.
Market inflows will be dependent on macro events like incoming Thursday's initial jobless claims, as weaker data could revive expectations for future rate cuts and help support sentiment currently at 14 extreme fear on the crypto fear and greed index.
Vincent Liu, Kronos Research
Spot Ether ETFs see outflows
Spot Ether (ETH) ETFs have similarly encountered persistent selling activity, experiencing negative flows throughout the previous five weeks as market participants reduced their positions in the cryptocurrency ranked second by market capitalization.
Over the course of the previous week, these investment products experienced approximately $123.4 million in net withdrawals, based on data from SoSoValue. These weekly declines materialized notwithstanding sporadic days of positive activity. Ether ETFs registered capital inflows across multiple trading sessions, capturing roughly $48.6 million on Feb. 17 and approximately $10.3 million on Feb. 13, though these gains were ultimately offset by more significant selling pressure during the initial portion of the week.