Bitcoin ETFs Struggle as Investors Pull $2.8B Amid Market Decline
By John Nada·Feb 2, 2026·2 min read
Bitcoin ETFs face significant outflows, with $2.8B pulled in two weeks, leaving average purchases underwater. Market fears grow amid economic uncertainties.
Bitcoin is currently trading below the average cost basis of US spot Bitcoin ETFs, following significant outflows recorded last month. According to Galaxy’s head of research, Alex Thorn, the eleven spot Bitcoin ETFs experienced their second and third-largest outflow weeks, totaling $2.8 billion in just two weeks. This drastic decline coincided with Bitcoin dropping about 11%, reaching a nine-month low.
The total assets under management for US Bitcoin ETF products now sit at approximately $113 billion, collectively holding around 1.28 million BTC, which implies an average cost basis of about $87,830 per Bitcoin. Thorn highlighted that the average ETF purchase is now underwater, emphasizing the pressure institutional investors are facing as spot Bitcoin ETFs have seen a 31.5% decline from their October peak of $165 billion. Meanwhile, the price of Bitcoin has dropped 40% during the same period.
Nick Ruck, director at LVRG Research, pointed to increasing fears of a bear market, suggesting that if recovery doesn't occur soon, Bitcoin's price could continue to falter. The crypto market is experiencing a sell-off amid macroeconomic uncertainties, including rising unemployment and inflation. Ruck warned of long-term sell pressure patterns forming if demand fails to recover.
The current landscape highlights the delicate balance in the crypto market as institutional investors maintain their positions. The ongoing challenges suggest a cautious outlook for Bitcoin as it navigates through turbulent waters.