U.S. spot Bitcoin exchange-traded funds have marked the fifth consecutive week of outflows, the longest period since the tariff-induced market sell-off in early 2025. The five-week outflow period is a sign of slowing institutional interest in the asset class as the overall cryptocurrency market sees rising volatility and a loss of short-term price movements.
The 12 U.S.-listed spot Bitcoin ETFs saw a net outflow of around $316 million in the week ended February 20, according to data from SoSoValue. The outflow saw nearly $105 million on Tuesday, followed by $133 million on Wednesday and $166 million on Thursday.
Although there were $88 million inflows on Friday, they were not enough to reverse the outflows. The bigger outflows in the previous weeks further contributed to the negative trend.
Total Bitcoin ETF Assets Reach $85 Billion
Over the last five weeks, there have been estimated withdrawals of $3.8 billion from U.S. spot Bitcoin ETFs. The largest withdrawal in a single week happened during the period ending Jan. 30, with about $1.49 billion being withdrawn from the funds, which is the steepest fall in the current market cycle.
Despite the recent withdrawals, the total net inflows since the launch of the funds are substantial at around $54.01 billion. The total net assets are currently at $85.31 billion, which is about 6.3% of the total market capitalization of Bitcoin. This is a clear indicator of the importance of ETFs in the overall crypto investment space.
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Risk-Off Sentiment Weighs on Crypto Exposure
Market analysts have attributed the recent outflows to rebalancing of portfolios due to increased macroeconomic risks. Analysts have indicated that the recent rise in geopolitical risks, trade wars, and tariffs has further fueled a risk-off sentiment, which has led institutional investors to withdraw from volatile assets such as cryptocurrencies.
The spot Ether ETFs have also reflected the negative sentiment, with net outflows of approximately $123.4 million in the last week. Although there have been some weeks of inflows, these have been overshadowed by larger withdrawals.
Analysts have indicated that the short-term performance of ETFs will be affected by macroeconomic data and overall risk sentiment in financial markets.
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