SKN | U.S. Bitcoin Spot ETFs Hit by $3.8B Outflows in Ongoing Withdrawal Trend

Key Points:

• U.S.-listed spot bitcoin ETFs have recorded nearly $3.8 billion in redemptions over five consecutive weeks, marking the longest outflow streak since February 2025.

• BlackRock’s IBIT accounted for roughly $2.13 billion of the withdrawals during the same period.

• The sustained redemptions highlight continued institutional caution following October’s market crash and ongoing macro uncertainty.

A Historic Five-Week Retreat

Investors have withdrawn nearly $3.8 billion from U.S.-listed spot bitcoin exchange-traded funds over the past five weeks, according to data from SoSoValue. The streak represents the longest continuous run of outflows since early 2025.

Last week alone saw approximately $316 million exit the sector, reinforcing the broader negative trend.

While the duration of the outflow streak matches a similar episode from February 2025, the total capital withdrawn remains smaller than the roughly $5 billion pulled during that earlier period.

BlackRock’s IBIT Leads Redemptions

The largest share of redemptions has come from BlackRock’s iShares Bitcoin Trust (IBIT), which has seen about $2.13 billion in outflows over the five-week stretch.

IBIT, once a flagship vehicle for institutional exposure to bitcoin, has become the primary channel for capital reductions as investors trim risk.

Despite the withdrawals, spot bitcoin ETFs collectively still hold tens of billions of dollars in assets, representing a meaningful portion of circulating supply.

Institutional Caution Persists

The redemptions suggest that institutional sentiment remains fragile.

Bitcoin, currently trading just below $65,000, remains well off its late-2025 highs above $120,000. The early October crash  which exposed vulnerabilities tied to leverage and offshore exchange dynamics  appears to have reshaped risk appetite among larger allocators.

Analysts also cite macro headwinds, including renewed geopolitical tensions and global tariff developments under U.S. President Donald Trump, as contributing factors.

Technical chart weakness has further reinforced defensive positioning.

Not a Repeat  Yet

Although the five-week streak mirrors February 2025 in length, the broader context differs.

At that time, bitcoin fell sharply after ETF outflows accelerated, eventually dropping toward the mid-$70,000 range. Today, bitcoin is already trading significantly below that zone, potentially limiting the shock factor of continued withdrawals.

The key question now is whether the ETF bleeding signals a deeper structural unwind or a temporary institutional pause.

Watching the Flow Data

ETF flows remain one of the clearest windows into institutional conviction.

Sustained redemptions can amplify downside pressure by forcing authorized participants to redeem shares and unwind underlying bitcoin positions. Conversely, a stabilization in flows could indicate that the worst of the risk-off phase has passed.

For now, the data shows institutions reducing exposure  not abandoning the asset entirely, but pulling back amid volatility and macro uncertainty.

Whether that caution turns into renewed accumulation or further retrenchment will likely depend on broader liquidity conditions and bitcoin’s ability to defend key technical levels.