$166M exodus from Bitcoin ETFs signals BTC's historically poor annual opening
US spot Bitcoin exchange-traded funds approach a five-week consecutive withdrawal period, accumulating $2.7 billion in year-to-date outflows as Bitcoin experiences what may be its most challenging start to a calendar year.
United States-listed spot Bitcoin exchange-traded funds experienced continued selling pressure on Thursday, with market observers highlighting that the digital asset is tracking toward one of its most challenging starts to any calendar year on record.
Exchange-traded funds tracking spot Bitcoin (BTC) recorded $165.8 million in net withdrawals on Thursday, pushing the week's total redemptions to $403.9 million, based on figures from SoSoValue.
These redemptions pushed the investment vehicles increasingly closer to completing a five-week consecutive period of net outflows, with losses since the beginning of the year (YTD) now standing at $2.7 billion.
Market trading volumes for these funds continued their declining trajectory, dropping 21% throughout the week and hitting the lowest points witnessed since the final days of December, indicating diminishing participation from market participants.
While cumulative net inflows remain at $53.9 billion, market analysts, including those at DropsTab, have observed that 2026 is developing into "one of the worst yearly starts in Bitcoin's history," with BTC valuations declining approximately 22% since the year began, based on TradingView figures.
BlackRock's IBIT leads losses with $368 million in outflows this week
The iShares Bitcoin Trust ETF (IBIT) from BlackRock was responsible for the majority of capital withdrawals during the week, representing $368 million in total outflows, based on Farside data.
The remaining US-listed spot Bitcoin exchange-traded funds experienced minimal to zero trading activity throughout the week, with the exception of approximately $50 million in withdrawals from the Fidelity Wise Origin Bitcoin Fund (FBTC) recorded on Wednesday.
Several prominent financial institutions disclosed reductions in their IBIT positions at the beginning of this week, with Brevan Howard decreasing its stake in the fund by up to 85% during the final quarter of 2025.
Bitcoin set for one of its worst yearly starts
The persistent withdrawals from Bitcoin exchange-traded funds are occurring alongside deteriorating investor confidence, as numerous data sources indicate unusually subdued BTC valuation levels when compared to earlier market cycles.
Drops Analytics emphasized Bitcoin's current price in relation to the halving event — a programmed occurrence that cuts BTC's block reward in half every four years and historically has been succeeded by substantial price increases in subsequent years.
"Almost two years later, BTC trades around $66,000 — nearly the same level as during the April 2024 halving," Drops Analytics said in a Telegram post on Thursday.
"This has never happened before. In previous cycles, BTC was already three to 10 times above halving levels by now," it added.
Based on Checkonchain data, Bitcoin is experiencing its most unfavorable yearly opening in its recorded history, measured 50 days into 2026, exceeding previous bearish years, including 2018.