Bitcoin ETFs See Historic $3.8 Billion Outflow as Institutional Risk Appetite Cools

Bitcoin spot exchange-traded funds (ETFs) have recorded their longest stretch of weekly outflows since February 2025. The largest cryptocurrency in the market saw nearly $3.8 billion withdrawn over five consecutive weeks. BTC currently trades at $63,158 with a 3.34% decline in the last 24 hours and nearly 50% below its all-time high above $126,000. 

BlackRock’s IBIT Leads Redemptions

The largest outflow came from BlackRock's iShares Bitcoin Trust (IBIT) with redemptions totaling approximately $2.13 billion in the last five weeks. 

According to SoSoValue, Bitcoin ETFs experienced outflows of $315.86 million last week which suggests institutions continued to reduce their investment positions. 

The current outflow streak matches the February 2025 episode. Yet its current size is still smaller than the previous $5 billion withdrawal cycle. 

The earlier outflow phase from previous market activity led to a major market downturn and raised concerns among traders about history repeating itself.

ETF Footprint Still Structurally Strong

The cumulative net inflows since the launch are still at $53.81 billion, despite the current $3.8 billion drawdown. 

Even after the recent cooling phase, ETF adoption exceeds the initial market forecast of $5-$15 billion in the first year. 

The trading activity of IBIT explains its status as one of the most liquid Bitcoin investments. Its average daily trading volume is currently above 75 million shares. The 52-week trading range has also extended from $35.30 to $71.82. 

The product became the fastest ETF to reach $70 billion in assets, underscoring its dominant position within the regulated crypto market.

Derivatives Activity Remains Elevated

While ETF flows show institutional de-risking, derivatives markets tell a more nuanced story. Global Bitcoin futures open interest stands near 702,208 BTC. It is similar to roughly $44.35 billion at current prices. 

Although below the $80 billion peak seen late last year, leverage remains historically elevated.

Options positioning shows a bullish skew, with call open interest exceeding puts by roughly 55.17% to 44.83%, and notable concentration around $75,000 to $90,000.

Also Read: How Bitcoin Volatility Impacts Investors and the Overall Crypto Market

Technical Structure

If BTC closes below $65,520 on a weekly basis it could extend the decline toward the next weekly support at $55,777. 

The Relative Strength Index (RSI) reads 25.64 on the weekly chart within an oversold area and it indicates strong bearish momentum. 

The Moving Average Convergence Divergence (MACD) indicator also showed a bearish crossover, further supporting the negative outlook.