U.S. spot Bitcoin ETFs have recorded net outflows for five consecutive weeks, with cumulative withdrawals nearing $3.8 billion — the longest streak since February 2025. Last week alone saw approximately $316 million exit these funds. Bitcoin traded around $64,977 at press time, down about 5% in 24 hours.
BlackRock's IBIT Bears the Brunt
BlackRock's iShares Bitcoin Trust (IBIT) suffered the heaviest hit, losing $2.13 billion over five weeks — over 56% of total outflows. Once hailed as "the most successful ETF launch ever" with over $50 billion in its first year, IBIT's persistent redemption sounds an alarm for institutional confidence. Reports attribute the capital flight to lingering caution after last October's exchange collapse, which exposed Bitcoin's fragility and continues to dampen institutional risk appetite.
Three Headwinds: Geopolitics, Tariffs, Technicals
The ETF bleeding can be traced to three pressures: geopolitical risk — escalating U.S.-Iran tensions fueling risk-off sentiment; tariff policy shock — President Trump's latest global tariff announcement amplifying uncertainty; technical weakness — deteriorating chart indicators suppressing buying interest.
History Rhymes? The Feb 2025 Precedent
A similar outflow streak occurred in February 2025, with $5 billion redeemed over five weeks. That selloff preceded Bitcoin dropping to $75,000 by early April. If history repeats, the current $3.8 billion outflow may only be the beginning, with markets watching closely for further downside.
Yet not all analysts are bearish. JPMorgan previously argued that Bitcoin's "risk-adjusted appeal beats gold," suggesting long-term upside remains intact. Short-term ETF flows may not reflect genuine institutional conviction; some outflows could be tactical hedge fund adjustments rather than a fundamental shift.