Bitcoin ETF Outflows Grow as Crypto Market Pressure Builds

The outflows pushed weekly flows negative and left spot Bitcoin ETFs net down roughly $1.8 billion year-to-date. Despite the losses, analysts at Bloomberg say investor behavior is still relatively resilient, with only an estimated 6% of assets exiting ETFs and cumulative inflows still near historic highs. 

Bitcoin ETFs See $545M Outflows 

Bitcoin exchange-traded funds (ETFs) extended their recent losing streak on Wednesday as Bitcoin drifted closer to the $70,000 level. According to data from Farside Investors, spot Bitcoin ETFs recorded $545 million in net outflows on the day, which was one of the heaviest single-day redemptions over the past few weeks. 

Bitcoin ETF flows (Source: Farside Investors)

These losses pushed weekly ETF flows firmly into negative territory, with $255 million in net outflows so far this week. On a year-to-date basis, the funds have attracted $3.5 billion in new inflows but have also seen $5.4 billion redeemed, leaving them net negative by roughly $1.8 billion. Total assets under management across spot Bitcoin ETFs now stand at approximately $93.5 billion.

The weakness in ETF flows mirrors the downturn across the crypto market. Total cryptocurrency market cap declined by around 20% since the start of the year, falling from roughly $3 trillion to about $2.5 trillion at press time, according to data from CoinCodex. 

Despite the headline outflows, several analysts argue that Bitcoin ETF investors have shown some impressive resilience during the downturn. Cumulative net inflows for spot Bitcoin ETFs are still at $54.8 billion, only about 13% below their peak level of $62.9 billion that was reached in October last year. 

Bloomberg ETF analyst James Seyffart said in a post on X that this pullback is relatively modest given the scale and speed at which capital entered these products during their strongest period, suggesting that most investors have not rushed for the exits.

Eric Balchunas, a senior ETF analyst at Bloomberg, estimated that only around 6% of total assets have exited spot Bitcoin ETFs during the recent sell-off. According to Balchunas, the majority of investors continued to hold their positions even as Bitcoin prices have declined sharply and many ETF holders are still underwater on a mark-to-market basis. 

BTC’s price action over the past month (Source: CoinCodex)

He also pointed out the performance of BlackRock’s iShares Bitcoin ETF, as its assets fell to roughly $60 billion after briefly peaking near $100 billion. Even with that decline, Balchunas said the fund’s growth remains unprecedented.

Together, the data suggest that while Bitcoin ETFs are clearly feeling the impact of market weakness, long-term investor conviction is relatively intact.