US spot Bitcoin exchange-traded funds (ETFs) have shown a notable trend, recording five consecutive weeks of net outflows, summing up to approximately $3.8 billion withdrawn. In the past week alone, around $315.9 million was pulled from these funds as institutional investors adjusted their strategies amidst an uncertain macroeconomic backdrop.

During the previous week, the outflows were impacted by larger redemption days despite occasional inflows. For instance, on a positive note, Bitcoin ETFs saw an influx of about $88 million, although this was overshadowed by greater withdrawals earlier in the week, including a significant $410 million on February 12. The cumulative figures indicate that while some positive sessions occurred, overall activity remained negative, culminating in a significant reduction in net weekly totals.

Spot Bitcoin ETFs have gathered approximately $54.01 billion in net inflows since their inception, maintaining total net assets near $85.31 billion, a figure that represents roughly 6.3% of Bitcoin’s market capitalization.

Institutional Caution Causes ETF Withdrawals

The recent trend concerning withdrawals from Bitcoin ETFs can be linked more to institutional risk mitigation rather than diminishing long-term interest in Bitcoin. Vincent Liu, Chief Investment Officer at Kronos Research, observed that these continual outflows indicate a alignment with shifting investor strategies shaped by rising geopolitical tensions and general market uncertainty. Liu remarked on the potential for volatile flows in the near future, anticipating ongoing sensitivities in digital assets amid macro developments.

He stated, “Market inflows will depend largely on macroeconomic indicators; for instance, the initial jobless claims set to be released on Thursday, as softer numbers could bolster expectations for future interest rate reductions, thereby improving sentiment currently underscored by prevalent market fears across the crypto landscape.”

Ether ETFs Also Encounter Sales Pressure

In addition to Bitcoin ETFs, spot Ether ETFs faced prolonged selling pressure with negative investor sentiment surfacing for five consecutive weeks. Therefore, approximately $123.4 million left the Ether funds within the last week. Despite sporadic inflows of about $48.6 million on February 17 and $10.3 million the week prior, heavier liquidations earlier in the week impacted the overall figures adversely.

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