Bitcoin Spot ETFs Endure Fifth Consecutive Week of Outflows Amid Cooling Crypto Sentiment

The cryptocurrency market is currently navigating a period of significant recalibration, marked by a broad market pullback and a noticeable cooling in institutional risk appetite. This shift has led to US-listed Bitcoin spot Exchange Traded Funds (ETFs) recording net capital outflows for an unprecedented fifth consecutive week. This sustained withdrawal marks the longest such streak since a major tariff storm in early 2025, according to the original source data.

Weekly Performance: A Closer Look at the $316 Million Exodus

Data compiled by SoSoValue reveals that as of the week ending February 20, the 12 US Bitcoin spot ETFs collectively experienced approximately $316 million in net outflows. Despite the week being shortened to just four trading days due to the President’s Day holiday, selling pressure remained substantial.

The initial three trading days of the week saw considerable losses:

• **Tuesday:** Approximately $105 million in outflows.
• **Wednesday:** Outflows expanded to $133 million.
• **Thursday:** A significant $166 million departed the funds.

A glimmer of hope emerged on Friday, as the market witnessed a modest influx of $88 million in capital, signaling some investors buying the dip. This recovery was primarily driven by asset management giants, with BlackRock’s IBIT attracting $64.5 million and Fidelity’s FBTC drawing in $23.6 million. However, these late-week inflows were insufficient to offset the week’s overall net outflow.

Historical Context: Echoes of Past Withdrawals

This latest wave of capital flight, which commenced in the week of January 20, has resulted in a cumulative loss of approximately $3.8 billion from Bitcoin ETFs to date.

The last comparable period of prolonged and severe outflows occurred in February and March of the previous year. At that time, an unexpected tariff announcement by then-US President Trump triggered a widespread decline across global risk assets, leading to an estimated $5.4 billion in net outflows from Bitcoin ETFs over five weeks.

While the current withdrawal streak matches the “duration” of last year’s event, its “impact” has been somewhat milder. The recent selling pressure was concentrated in late January, with two consecutive weeks seeing outflows of $1.33 billion and $1.49 billion, respectively. In contrast, the past three weeks have shown a more contained outflow, ranging between $316 million and $360 million.

Long-Term Resilience Amidst Short-Term Headwinds

Despite these short-term challenges, the long-term outlook for Bitcoin ETFs remains robust. Since their launch in January 2024, cumulative net inflows have reached an impressive $54 billion, with the total Asset Under Management (AUM) standing at approximately $85.3 billion. This substantial capital base underscores the enduring institutional interest in Bitcoin as an asset class.

Bitcoin Price Action and Key Technical Levels

Bitcoin’s price is currently fluctuating around $65,800, having experienced a year-to-date decline of nearly 25%. On-chain analytics firm Glassnode highlights that Bitcoin has fallen below the critical “True Market Mean” defense line at $79,000. This indicator, which measures the average holding cost for active investors, is often seen as a pivotal demarcation for market sentiment, signaling periods of expansion or contraction.

Looking ahead, Stephen Coltman, Head of Macroeconomic Research at 21shares, offers insights into potential market directions: “Bulls are hoping that $65,000 will establish itself as a definitive bottom. Conversely, a strong rebound and sustained position above $70,000 would indicate that the recent selling pressure has largely been exhausted.”

Broader Crypto Market: Ethereum Struggles, Altcoins Find Support

The challenges weren’t exclusive to Bitcoin. Ethereum spot ETFs also recorded a net outflow of $123 million last week, marking their fifth consecutive week of declines and bringing cumulative outflows to $1.39 billion.

However, some altcoin ETFs managed to defy the broader trend, attracting capital against the current. Solana (SOL) spot ETFs saw a net inflow of $14.3 million last week, while Ripple (XRP) experienced a modest inflow of $1.8 million, indicating selective investor interest in alternative digital assets.