Bitcoin ETFs Experience Significant Exits as BTC Faces Tough Start to the Year
The latest data shows Bitcoin ETFs are on the verge of a prolonged outflow period, indicating a challenging beginning for Bitcoin in 2026.
Bitcoin ETFs Experience Significant Exits as BTC Faces Tough Start to the Year
Selling pressure on US-listed Bitcoin ETFs has continued, marking a potential five-week outflow streak. This week, the funds experienced outflows totaling $166 million, contributing to a staggering $2.7 billion in redemptions year-to-date.
Daily flows in US spot Bitcoin ETFs this week. Source: SoSoValue
Trading levels have seen a significant decline of 21% week-over-week, resulting in the lowest number of trades since December. Analysts emphasize the concerning trend as Bitcoin’s price has dropped approximately 22% since the beginning of the year.
BlackRock’s IBIT Leads Losses with $368 Million in Outflows This Week
The iShares Bitcoin Trust ETF (IBIT) managed by BlackRock reported the majority of the outflows this week amounting to $368 million. Other US-listed Bitcoin ETFs showed minimal activity, with only $50 million exiting the Fidelity Wise Origin Bitcoin Fund (FBTC).
Daily flows in US spot Bitcoin ETFs by issuer. Source: Farside.co.uk
Bitcoin Set for One of Its Worst Yearly Starts
The outflow trends reflect a harsh investor sentiment, with Bitcoin’s value faltering compared to previous cycles. Notably, Drops Analytics noted that Bitcoin is currently trading at levels almost identical to those seen during the April 2024 halving event.
Source: Drops Analytics
Inevitably, various financial institutions, including Brevan Howard, have significantly reduced their positions in IBIT, marking a pivotal shift in ETF investment. A year and a half following the last halving, Bitcoin’s trading reality offers a stark deviation from historical patterns, marking one of the most troubling starts to the year on record.
