Crypto ETFs, particularly spot Bitcoin and Ethereum ones, have been experiencing sustained net outflows in early 2026, marking a reversal from stronger inflows in prior periods.
Broader digital asset products including Bitcoin, Ethereum, and others saw $288 million in net outflows last week, extending a five-week losing streak with cumulative outflows reaching $4.0 billion. This is driven heavily by U.S. investors ($347 million in outflows that week), amid low trading volumes ($17 billion, the lowest since July 2025) signaling reduced conviction rather than outright panic.
Spot Bitcoin ETFs have been the main driver: Over the past five weeks, they’ve recorded around $3.8–4.3 billion in net outflows—the longest streak since early 2025. Year-to-date (YTD) in 2026, outflows total roughly $2.6–4.5 billion while broader estimates reach higher when including the full period.
BlackRock’s iShares Bitcoin Trust (IBIT) has led the exodus, shedding about $2.13 billion over five weeks. Net outflows around $940 million so far this month, with mixed daily results; recent positive inflows of $257.7 million on one day—the largest since early February—pushing some weekly figures temporarily positive after heavy prior redemptions.
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Despite the bleed, cumulative net inflows since launch remain strong at over $54 billion equivalent to ~680K BTC held. Spot Ethereum ETFs have followed a similar trend: Cumulative outflows in February around $490 million, with five consecutive weeks of net redemptions in some reports.
Recent daily flows have been mixed and limited; $9.23 million net inflows on one recent day, driven by Grayscale’s Mini ETH, but overall pressure persists with ETH trading around $2000. Some divergence exists: Minor altcoin products like Solana, XRP, Chainlink have seen small inflows, but they’re not enough to offset the Bitcoin and Ethereum dominance in outflows.
This outflow trend contrasts sharply with early 2025 patterns and has contributed to downward pressure on crypto prices, with Bitcoin facing risk-off sentiment, institutional de-risking including Q4 2025 13F filings showing sales, and broader market caution. However, a recent rebound in daily inflows and BTC price suggests potential stabilization if conviction returns.
Recent highs approached $68,000 with closes around $66,000–$66,900 in some reports. This follows a pullback from earlier February levels near $68,000 and represents a recovery from lows in the low-to-mid $60,000s or below in prior sessions.
BTC remains significantly off its 2025 peaks, down roughly 47–50% from those highs, trading ~20% below average ETF cost bases. When spot Bitcoin ETFs see net outflows, issuers redeem shares by selling underlying BTC holdings on the open market. This creates selling pressure, reducing liquidity and amplifying downside moves—especially in a low-volume environment.
Five-week streak: ~$3.8–$4.3 billion in net outflows longest since late 2025, with IBIT leading at ~$2.1 billion lost. Heavy redemptions earlier in the month ~$940M–$993M monthly bleed at points, though recent daily data shows a reversal— largest since early February, led by BlackRock and Fidelity, briefly pushing some weekly figures positive after prior heavy outflows.
Outflows have coincided with BTC’s ~20% February drawdown and multi-week weakness. Analysts note this as a “feedback loop”: outflows ? selling ? lower prices ? more fear/redemptions. On-chain signals (e.g., high whale exchange deposits, elevated large-holder inflows) reinforce distribution pressure from big players trimming exposure.
Despite the bleed, cumulative inflows since 2024 launch remain strong ~$54 billion, or ~680K BTC held, with ETF AUM ~$81–$85 billion. This suggests tactical de-risking; hedge funds slashing ~28% exposure in Q4 2025, rotating to gold rather than total abandonment.
Not all pressure is ETF-driven—macro factors, leverage liquidations, and retail fear; spikes in “Bitcoin zero” searches, low Fear & Greed Index compound it. Persistent outflows could test lower supports ~$58,000–$60,000 mentioned in analyses as potential floors if selling intensifies. A fifth straight monthly loss streak looms if momentum doesn’t reverse.
Recent inflow rebound (+$257M daily) and BTC’s bounce toward $65K+–$66K+ signal possible stabilization, especially if tied to weaker USD, risk-on equities, or renewed institutional conviction. Divergences hint at selective U.S. demand returning amid global caution.
ETF flows remain a key price driver in this era—reversing to consistent inflows would likely ease pressure and support recovery, while prolonged redemptions could extend the correction. This reflects a “purification” phase per some analysts, with short-term holders exiting and longer-term capital potentially stepping in at lower levels.