Spot Bitcoin ETFs Suffer $3.8 Billion in Withdrawals Over Five Weeks
By John Nada·Feb 21, 2026·5 min read
Spot Bitcoin ETFs have recorded $3.8 billion in outflows over five weeks, reflecting institutional de-risking amid macroeconomic uncertainties.
US spot Bitcoin exchange-traded funds (ETFs) have posted five consecutive weeks of net outflows, with investors pulling roughly $3.8 billion from the products over the period. This trend marks a significant shift in investor sentiment and highlights the ongoing challenges faced by digital assets in a complex economic landscape.
During the last week, the funds recorded about $315.9 million in net outflows, according to data from SoSoValue. This decline is particularly alarming for an asset class that has seen explosive growth in recent years. The biggest weekly withdrawal during this five-week streak occurred in the week ending January 30, when spot Bitcoin (BTC) ETFs recorded about $1.49 billion in net outflows. Such a steep drop in assets under management reflects growing apprehension among investors regarding the future performance of Bitcoin and other cryptocurrencies.
The net weekly outflows come as some sessions posted inflows. On Friday, Bitcoin ETFs saw about $88 million in inflows, but these were outweighed by larger redemption days earlier in the week. Notable withdrawals included more than $410 million on February 12, along with additional negative sessions from February 17 through February 19, leaving the weekly total firmly negative. This pattern of brief inflows followed by substantial outflows suggests a lack of sustained confidence among investors.
As of Friday, spot Bitcoin ETFs have accumulated roughly $54.01 billion in net inflows since launch, which is a substantial figure that underscores the initial enthusiasm for these investment vehicles. However, total net assets stood near $85.31 billion, representing approximately 6.3% of Bitcoin’s overall market capitalization. This indicates that while the ETFs have garnered significant investment, the current withdrawal trend poses risks to sustaining this level of interest.
Recent commentary from industry experts sheds light on the underlying causes of these withdrawals. According to Vincent Liu, chief investment officer at Kronos Research, the recent outflows from spot Bitcoin ETFs appear tied to institutional positioning rather than a loss of long-term interest in the asset. Liu suggested that the outflows reflect portfolio de-risking as geopolitical tensions and broader macroeconomic uncertainty rise.
The ongoing trade disputes and tariff developments have reinforced a risk-off environment across markets, leaving digital assets sensitive to macro headlines. Liu pointed out that market inflows will be dependent on macro events, such as upcoming economic indicators like initial jobless claims. Weaker data could revive expectations for future rate cuts and help support market sentiment, currently at an extreme fear level on the crypto fear and greed index. This environment of uncertainty complicates the outlook for Bitcoin ETFs, as investors weigh potential risks against long-term growth prospects.
The performance of Bitcoin ETFs will likely remain sensitive to economic indicators and market sentiment in the coming weeks. As institutional investors navigate this tumultuous landscape, their decisions will be crucial in shaping the future trajectory of these funds. The heightened volatility in the cryptocurrency market, driven by external factors, underscores the challenges that digital assets face in establishing themselves as stable investment options.
Additionally, the selling pressure is not limited to Bitcoin ETFs. Spot Ether (ETH) ETFs have also faced sustained selling pressure, with flows turning negative over the past five weeks as investors trimmed their exposure to the second-largest cryptocurrency. Last week, Ether ETFs recorded about $123.4 million in net outflows, according to SoSoValue data. The weekly losses came despite occasional positive sessions, illustrating the widespread caution among cryptocurrency investors.
Ether ETFs posted inflows on several days, including about $48.6 million on February 17 and $10.3 million on February 13, but these were outweighed by heavier selling earlier in the week. This uneven performance further complicates the narrative around institutional investment in digital assets, suggesting that while there may still be pockets of interest, the prevailing sentiment is one of caution and risk aversion.
The broader implications for the cryptocurrency market are evident as both Bitcoin and Ether ETFs face significant outflows. Investors are clearly reacting to a combination of macroeconomic factors and geopolitical tensions, which could lead to continued volatility in digital asset prices. The interplay between institutional behavior and macroeconomic developments will be crucial in determining the direction of the market.
In this context, the ability of Bitcoin ETFs to attract new investments amid declining outflows will depend heavily on external economic conditions and investor sentiment. The current risk-off environment, compounded by fears of inflation and potential interest rate hikes, creates a challenging backdrop for cryptocurrencies, which often thrive in more bullish market conditions.
Moreover, the sentiment towards digital assets is also influenced by the regulatory landscape. As governments around the world grapple with how to approach cryptocurrencies, regulatory clarity or the lack thereof can significantly impact investment decisions. Institutional investors, in particular, tend to be more sensitive to regulatory developments, as compliance and legal frameworks play a vital role in their investment strategies.
As the cryptocurrency market navigates these turbulent waters, the performance of Bitcoin and Ether ETFs will serve as a barometer for broader market sentiment. Investors are increasingly aware that macroeconomic data releases, geopolitical developments, and regulatory changes can create ripples in the digital asset space. Thus, staying informed about these factors will be crucial for those looking to engage with or invest in Bitcoin and Ether ETFs moving forward.