Bitcoin Spot ETFs See BlackRock Join the Sell-Off… How Far Will the Outflows Go?

▲ Bitcoin (BTC)

Bitcoin (BTC) is experiencing its worst start to a year in 2026, with more than $100 million exiting the spot ETF market in a single move, sharply dampening investor sentiment.

According to cryptocurrency-focused media outlet Cointelegraph on February 21 (local time), a total of $166 million in net outflows occurred in the U.S. spot Bitcoin ETF market in just one day. This marked the third consecutive day of fund withdrawals, fully reflecting the downward pressure across the broader digital asset market. As the price correction lengthens, investors are reportedly pulling funds either to realize profits or to manage risk.

By asset manager, BlackRock’s IBIT—the world’s largest asset manager—accounted for the majority of the outflows, with $164 million withdrawn in a single day. IBIT had previously led the market by attracting massive inflows, but this unusual large-scale single-day outflow shocked the market. Valkyrie’s BRRR also recorded net outflows of about $1.7 million, joining the bearish trend.

The total net assets of spot Bitcoin ETFs currently stand at approximately $84.37 billion, representing 6.28% of Bitcoin’s total market capitalization. Despite the recent outflows, cumulative historical net inflows remain at $53.925 billion. However, the pace of recent withdrawals suggests that institutional investors’ optimism is shifting toward caution. Notably, this trend emerging at the very start of the first quarter of 2026 contrasts sharply with previous bull markets.

Bitcoin’s price has continued to decline since the beginning of the year, marking its worst annual start in 2026. According to on-chain data, unrealized losses from holdings by Strategy and 11 spot ETFs amount to roughly $7 billion, with the average purchase price estimated at around $85,360. As prices fall significantly below this average cost basis, large-scale forced liquidations have occurred, fueling a vicious cycle that further drives prices downward.

Amid extreme volatility in the digital asset market, experts advise maintaining a conservative approach for the time being. They suggest keeping the possibility of further declines open until institutional outflows subside and key support levels are confirmed. For Bitcoin to overcome its worst start to a new year and lay the groundwork for a rebound, renewed inflows into the spot ETF market and improvements in the macroeconomic environment will likely be necessary.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from it. The content should be interpreted solely for informational purposes.