Bitcoin ETFs Bleed $3.8 Billion in Historic 5-Week Outflow Streak - Institutional Confidence Crumbles
Coindesk2 months ago
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Bitcoin ETFs Bleed $3.8 Billion in Historic 5-Week Outflow Streak - Institutional Confidence Crumbles

Market Sentiment
bitcoin
etf
outflows
institutional
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Summary:

  • $3.8 billion withdrawn from Bitcoin ETFs over five straight weeks - the longest outflow streak since February 2025

  • BlackRock's IBIT leads the exodus with $2.13 billion in outflows over the same period

  • Bitcoin trading below $65,000 - well under the $75,000 level reached after the previous outflow streak

  • Institutional wariness persists following the early October crash that exposed vulnerabilities

  • Analysts cite U.S.-Iran tensions, Trump tariffs, and technical factors as driving the risk aversion

Bitcoin ETFs Face Unprecedented Outflows

Investors have pulled nearly $3.8 billion from U.S.-listed spot Bitcoin ETFs over five consecutive weeks, marking the longest outflow streak since February 2025. This massive withdrawal highlights persistent institutional wariness toward Bitcoin following the early October crash.

The Bleeding Continues

Last week alone saw $316 million vanish from these funds, according to data from SoSoValue. Leading this concerning trend is BlackRock's IBIT, which has lost a staggering $2.13 billion over the same five-week period.

Institutional Aversion Deepens

This extended outflow streak demonstrates that institutions remain cautious about the leading cryptocurrency. The aversion began after the early October crash, which exposed Bitcoin's vulnerability to issues on offshore exchanges like Binance.

Historical Context and Current Reality

While the current outflow streak matches the length of February 2025's trend, it's less severe in dollar terms - $3.8 billion versus $5 billion back then. That previous streak preceded a significant market decline, with Bitcoin falling to $75,000 in early April.

Today, Bitcoin is already trading well below that level, hovering just under $65,000 at the time of writing.

What's Driving the Exodus?

Analysts point to several factors contributing to this ongoing risk aversion:

  • Lingering U.S.-Iran tensions
  • President Donald Trump's recent global tariff announcements
  • Technical price-chart factors

These combined pressures continue to test institutional confidence in Bitcoin's stability and growth potential.

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