Bitcoin ETFs See $3.8 Billion in Outflows Over Five Weeks, ‘Worst Crisis Since Launch’

▲ Bitcoin Spot ETF

The U.S. Bitcoin (BTC) spot ETF market has recorded net outflows totaling $3.8 billion over five consecutive weeks, deepening investor pessimism.

According to a report published by crypto-focused media outlet BeInCrypto on February 21 (local time), U.S.-listed Bitcoin spot ETFs have continued their longest streak of net outflows since their launch in January, extending to five straight weeks. The total outflow amounts to $3.8 billion, interpreted as a sign of tightening liquidity across the digital asset market and a withdrawal of institutional capital.

By asset, Grayscale’s GBTC saw the largest outflows, losing approximately $1.2 billion. Fidelity’s FBTC and Bitwise’s BITB also posted net outflows, adding to market selling pressure. Although BlackRock’s IBIT maintained net inflows of about $1.1 billion and attempted to provide support, it was insufficient to offset the broader market decline.

Uncertainty in the macroeconomic environment has been cited as the primary cause of the capital flight. Growing expectations that the Federal Reserve will delay interest rate cuts, citing higher inflation indicators, have sharply reduced the appeal of risk assets such as Bitcoin. Investors are restructuring their portfolios toward safer assets and maintaining a cautious stance rather than allocating funds to volatile cryptocurrencies.

The market’s Fear and Greed Index currently stands at 22, indicating a state of extreme fear. This suggests that not only retail investors but also institutional investors lack confidence in current price support levels. As large-scale outflows continue, Bitcoin’s price is under pressure and threatening to break key technical support levels.

Experts predict that a near-term reversal to net inflows in the Bitcoin spot ETF market is unlikely. Until there are clear signs of easing inflation or a definitive shift in monetary policy, conservative fund management is expected to prevail. This development shows that Bitcoin spot ETFs have now been fully integrated into the mainstream financial system as a core asset class directly influenced by macroeconomic indicators.

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