Bitcoin ETFs Hit 5-Week Outflow Streak as Institutional Appetite Cools

Bitcoin’s institutional investment vehicles are facing their longest stretch of withdrawals since early 2025, with spot Bitcoin exchange-traded funds recording net outflows for the fifth consecutive week. The trend signals a cooling in institutional demand even as Bitcoin prices remain relatively stable, pointing to deeper shifts in how major investors are positioning themselves in the digital asset space.

According to data from SoSoValue, the 12 U.S. spot Bitcoin ETFs collectively shed approximately $316 million during the week ending February 20. The timing couldn’t have been more compressed—trading activity was squeezed into just four sessions due to the Presidents’ Day holiday, with the first three days all closing negative before a modest Friday rebound.

The outflow pattern revealed itself starkly across the week. Tuesday saw roughly $105 million exit the funds, followed by a steeper $133 million on Wednesday and a sharp $166 million on Thursday. Friday’s $88 million inflow, led by BlackRock’s IBIT adding about $64.5 million and Fidelity’s FBTC contributing roughly $23.6 million, wasn’t enough to offset the earlier damage.

This marks the continuation of a trend that began the week of January 20, with cumulative withdrawals now reaching approximately $3.8 billion from the Bitcoin ETF complex. The last comparable streak occurred nearly a year ago during a tariff-driven market sell-off that similarly pressured risk assets across the board. While the duration matches that earlier period, the magnitude has been notably smaller, with the heaviest withdrawals concentrated in late January when funds lost $1.33 billion and $1.49 billion in consecutive weeks.

Despite the persistent outflows, the ETF market remains substantial by any measure. Cumulative net inflows since the products launched in January 2024 still total about $54 billion, and aggregate net assets stand near $85.3 billion. This suggests the current trend represents a pause or rotation rather than a wholesale abandonment of Bitcoin as an institutional asset class.

The price action tells a complementary story. Bitcoin has traded around $68,600, down more than 20% year to date and below a key onchain level that analysts have identified as separating expansion from consolidation phases. The disconnect between stable prices and continued outflows hints at complex positioning dynamics among institutional players.

Ether funds showed a similar pattern, losing about $123 million during the week and extending their own five-week streak of withdrawals. However, the crypto fund landscape isn’t uniformly negative. Newer products tied to Solana attracted approximately $14.3 million in inflows, while XRP-based funds recorded a modest $1.8 million gain. This divergence suggests capital is rotating within crypto investment products rather than leaving the sector altogether, with investors repositioning across assets as sentiment remains cautious rather than panicked.

The broader market context matters here. Traditional risk assets have faced headwinds from persistent inflation concerns, interest rate uncertainty, and geopolitical tensions. Bitcoin, often correlated with tech stocks and growth assets, has felt these pressures acutely. The outflows from ETFs—which represent some of the most accessible and regulated ways for institutions to gain Bitcoin exposure—suggest that allocators are either reducing risk or shifting to alternative crypto exposures.

Interestingly, the outflows come despite Bitcoin’s fundamental narrative remaining largely intact. The upcoming halving event, institutional infrastructure continues to mature, and regulatory clarity, while slow, continues to progress in favorable directions. This suggests the current trend may be more about tactical positioning than strategic reassessment.

The data also reveals interesting patterns in which funds are weathering the storm better than others. BlackRock’s IBIT and Fidelity’s FBTC consistently show resilience during outflow weeks, often posting inflows even when the broader complex is negative. This suggests these established asset managers continue to attract institutional capital even in challenging periods, possibly due to their brand strength, operational expertise, or integration with existing investment workflows.

Looking deeper, the timing of these outflows coincides with several macro factors. The Federal Reserve’s cautious stance on rate cuts, persistent inflation readings above target, and geopolitical tensions in Eastern Europe and the Middle East have all contributed to a risk-off environment. Bitcoin, despite its “digital gold” narrative, has often traded more like a risk asset, particularly in its ETF form where it’s accessible to traditional allocators.

The five-week streak also raises questions about whether this represents a temporary correction or the beginning of a more sustained trend. Historical patterns suggest that ETF outflows often accelerate during periods of price weakness, creating a feedback loop where selling begets more selling. However, the fact that prices have remained relatively stable despite the outflows suggests that selling pressure is being absorbed by other market participants, possibly including over-the-counter desks, market makers, or international buyers.

What makes this particularly noteworthy is the contrast with Bitcoin’s earlier ETF story. The first months after the SEC approved spot Bitcoin ETFs saw unprecedented inflows, with the products collectively adding billions in assets as institutions raced to gain exposure. The current reversal, while not catastrophic in absolute terms, represents a significant shift in momentum that market participants will be watching closely.

The broader implications extend beyond just Bitcoin. The crypto fund ecosystem is showing signs of maturation, with capital flowing more selectively between assets based on technological developments, regulatory treatment, and market narratives. Solana’s inflows, for instance, likely reflect enthusiasm around its technical capabilities and ecosystem growth, while XRP’s modest gains may relate to ongoing legal developments and its positioning in cross-border payments.

As the crypto investment landscape evolves, these flow patterns will be crucial indicators of institutional sentiment. The current five-week outflow streak, while notable, exists within a broader context of massive cumulative inflows and growing infrastructure. Whether this represents a temporary pause, a tactical rotation, or the beginning of a more sustained trend shift remains one of the key questions for crypto markets in 2026.

Tags: Bitcoin ETF outflows, institutional demand cooling, crypto fund rotation, spot Bitcoin withdrawals, BlackRock IBIT flows, Fidelity FBTC performance, Solana inflows, XRP fund gains, crypto investment trends, institutional Bitcoin positioning

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