Spot Bitcoin ETFs Record $3.8B in Outflows Over Five Consecutive Weeks
US spot Bitcoin exchange-traded funds have recorded five consecutive weeks of net outflows totaling approximately $3.8 billion, as institutional investors reduce exposure amid mounting macroeconomic uncertainty and geopolitical tensions.
During the most recent week, the funds recorded about $315.9 million in net outflows, according to data from SoSoValue. The largest weekly withdrawal during this five-week streak occurred in the week ending Jan. 30, when spot Bitcoin ETFs recorded approximately $1.49 billion in net outflows.
The weekly net outflows persisted despite some individual trading sessions posting inflows. On Friday, Bitcoin ETFs saw about $88 million in inflows, but these gains were overshadowed by larger redemption days earlier in the week.
Notable withdrawals included more than $410 million on Feb. 12, along with additional negative sessions from Feb. 17 through Feb. 19. These larger outflow days left the weekly total firmly in negative territory.
As of Friday, spot Bitcoin ETFs have accumulated roughly $54.01 billion in net inflows since their launch in January 2024. Total net assets stood near $85.31 billion, representing approximately 6.3% of Bitcoin’s overall market capitalization.
Recent withdrawals from spot Bitcoin ETFs appear tied to institutional portfolio repositioning rather than a fundamental loss of long-term interest in the asset, according to Vincent Liu, chief investment officer at Kronos Research. He said the outflows reflect portfolio de-risking as geopolitical tensions and broader macro uncertainty continue to rise.
Liu added that flows may remain unstable in the near term as market participants navigate an increasingly complex landscape. Escalating trade disputes and tariff developments have reinforced a risk-off environment across global markets, leaving digital assets particularly sensitive to macro headlines.
“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,” Liu told Cointelegraph.
The sustained outflows mark a significant shift from the strong inflows that characterized much of 2024, when institutional appetite for Bitcoin exposure through regulated investment vehicles drove substantial capital into the newly launched products. The current trend suggests investors are reassessing their risk exposure across portfolios as uncertainty mounts.
Spot Ether ETFs have also faced sustained selling pressure, with flows turning negative across the past five weeks as investors trimmed exposure to the second-largest cryptocurrency by market capitalization. During the most recent week, the funds recorded about $123.4 million in net outflows, according to SoSoValue data.
The weekly losses for Ether ETFs came despite occasional positive trading sessions throughout the period. Ether ETFs posted inflows on several days, including about $48.6 million on Feb. 17 and $10.3 million on Feb. 13. However, these positive sessions were outweighed by heavier selling pressure earlier in the week.
The parallel outflows from both Bitcoin and Ether ETF products suggest the trend is driven by broader market dynamics rather than asset-specific concerns. Institutional investors appear to be reducing exposure across cryptocurrency products as part of a wider defensive positioning strategy.
The sustained withdrawal period comes as Bitcoin has faced price pressure, contributing to what analysts have characterized as one of the worst starts to a year in the cryptocurrency’s history. The correlation between price weakness and ETF outflows highlights the sensitivity of institutional flows to market momentum.
Market observers are closely watching upcoming economic data releases for signals that could influence investor sentiment and potentially reverse the outflow trend. Weaker-than-expected employment data or other indicators of economic softening could revive expectations for Federal Reserve rate cuts, potentially improving conditions for risk assets including cryptocurrencies.
More Reads:
Bitcoin Miner MARA Acquires 64% Stake in French AI Data Center Operator Exaion
Dubai Opens Secondary Market for $5 Million in XRP Ledger-Based Real Estate Tokens
Discover more from Dipprofit
Subscribe to get the latest posts sent to your email.
