After recent outflows totaling $272 million, the total assets under management (AUM) for Bitcoin ETFs have fallen below $100 billion. Year-to-date losses have now approached $1.3 billion.
According to SoSoValue’s data, this decrease is notable as it marks the first instance since April 2025 that Bitcoin ETF assets have dipped below that threshold. Previously, they had peaked at around $168 billion in October.
As Bitcoin struggles, trading below $74,000, the overall cryptocurrency market cap has fallen from $3.11 trillion to $2.64 trillion in just one week, as reported by CoinGecko.
Altcoin Funds See Mild Inflows
Following the latest downturn in Bitcoin ETF flows, there was a brief recovery on Monday, with a net inflow of $562 million. However, subsequent losses returned on Tuesday, bringing the cumulative outflows to almost $1.3 billion amid ongoing market fluctuations.
Conversely, altcoin ETFs, including those for Ether (ETH), XRP, and Solana (SOL), managed to attract minor inflows of $14 million, $19.6 million, and $1.2 million respectively.
Are Institutions Seeking Alternatives Beyond ETFs?
The current downward trend in Bitcoin ETFs indicates BTC is trading under the creation basis of $84,000, which could mean new ETF shares might be issued at a loss, impacting fund flows. Market analysts believe this decline may not lead to a mass sell-off in ETFs.
On a recent post on X, ETF analyst Nate Geraci remarked, “My guess is a vast majority of assets in spot BTC ETFs stay put regardless.”
Thomas Restout, CEO of institutional liquidity provider B2C2, echoed this perspective, commenting on the resilience of institutional ETF investors. He also hinted at a potential shift towards direct trading on blockchain platforms, moving away from merely investing in ETFs.
“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout noted.
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