Recent data indicates that U.S.-listed spot bitcoin exchange-traded funds (ETFs) have experienced significant outflows, totaling nearly $3.8 billion over the past five weeks. This trend marks the longest period of withdrawals since February 2025, highlighting ongoing institutional hesitance toward the cryptocurrency following a notable market downturn in early October.
In the most recent week, approximately $316 million was withdrawn from these funds, according to analytics firm SoSoValue. BlackRock’s IBIT fund has been particularly affected, with outflows totaling $2.13 billion during this five-week period. This sustained withdrawal trend underscores a cautious stance among institutional investors, who appear to be reacting to vulnerabilities exposed during the October crash, particularly those related to offshore exchanges like Binance.
While the current outflows mirror the length of a similar trend from February last year, the financial impact is less severe, with $3.8 billion withdrawn compared to $5 billion during the previous streak. The earlier outflow period preceded a market decline that saw bitcoin’s value drop to as low as $75,000 by early April. Currently, bitcoin is trading below that threshold, hovering around $65,000.
Analysts have pointed to several factors contributing to this ongoing risk aversion. These include heightened geopolitical tensions between the U.S. and Iran, recent tariff announcements from President Donald Trump, and various technical indicators within price charts. Such elements have compounded investor uncertainty, leading to a cautious approach toward bitcoin investments.
Market dynamics are further complicated by recent trading patterns. Bitcoin has seen a 5% decline, falling to $64,700 as of early trading this week. On-chain data from Glassnode and CryptoQuant reveals that large holders are currently dominating exchange inflows, while short-term investors are increasingly selling at a loss. This suggests a fragile phase for the cryptocurrency market.
Key observations from recent trading activity include:
- Bitcoin’s price has dipped to $64,700, reflecting a 5% decrease over the past 24 hours.
- Realized losses for recent buyers have decreased from approximately $1.24 billion to $480 million per day, indicating a potential easing of panic selling, though a bottom-building phase may still be in progress.
- Exchange data illustrates that large holders are now leading the selling activity, while altcoin deposits and volatility are on the rise, alongside a decline in stablecoin inflows, suggesting weakened buying power as bitcoin tests support levels around $65,000.
Institutional outflows from U.S.-listed bitcoin ETFs have reached $3.8 billion over five weeks, reflecting continued wariness among investors. Factors such as geopolitical tensions and recent market volatility contribute to the cautious sentiment surrounding bitcoin.