Bitcoin ETFs Experience $3.8 Billion Outflow Over Five Weeks

U.S.-listed spot Bitcoin exchange-traded funds have seen a significant withdrawal of nearly $3.8 billion over the past five weeks. This marks the longest outflow streak since February 2025, highlighting ongoing institutional caution towards Bitcoin following the early October crash.

BlackRock’s IBIT fund has been at the forefront of this trend, experiencing approximately $2.13 billion in redemptions during the same period. The hesitation among institutional investors follows the cryptocurrency’s exposure to manipulative activities on offshore exchanges, including Binance.

While the current outflow period matches last year’s length, the financial impact is less severe, with $3.8 billion withdrawn compared to $5 billion previously. The past streak led to a market downturn, with Bitcoin dropping to $75,000 by early April. Currently, Bitcoin trades below that level, at around $64,700.

Several factors contribute to the persistent risk aversion. Notably, U.S.-Iran tensions, recent global tariff announcements from President Donald Trump, and specific technical price-chart patterns all play a role. Additionally, as we previously reported when Bitcoin dipped amid tariff uncertainty, these geopolitical and economic factors continue to influence market dynamics.

Analyst Insight: The sustained outflows from Bitcoin ETFs suggest that institutional confidence remains fragile, potentially leading to further market volatility.

On-chain data from Glassnode and CryptoQuant indicates that large holders are dominating exchange inflows while short-term investors sell at a loss, pointing to a weak market foundation. As whale selling grows and recent buyers lock in losses, Bitcoin’s price has dipped below $65,000, further underscoring the market’s vulnerability.

The question now is whether institutional investors will regain confidence or if this cautious approach will persist, potentially affecting Bitcoin’s price stability in the coming weeks.

Sources: CoinDesk