Bitcoin ETF Outflows Reach Six Consecutive Weeks

Bitcoin ETFs have been a cornerstone of support for the cryptocurrency's price stability, but recent data suggests this trend is reversing.

In six consecutive weeks, investors have pulled out millions from these funds, with BlackRock's IBIT ETF accounting for more than half of all outflows. This sudden shift in behavior has left analysts wondering if the market has finally reached a tipping point.

The average buying price of ETF investors is now around $84,100, and with Bitcoin trading at approximately $68,000, most holders are sitting on losses of about 20%. The selling pressure is not limited to small retail traders but also includes large institutions that were once seen as long-term holders.

On February 23rd alone, investors withdrew $203.8 million from these funds, a stark contrast to the previous months when such outflows were rare. VanEck's HODL ETF was the only exception, seeing fresh money with $6.4 million in inflows, suggesting that some investors believe prices below $70,000 are an opportunity for buying.

However, the trend is not uniform across all cryptocurrencies. Solana ETFs have seen fresh inflows, with Bitwise's BSOL bringing in $6.3 million on February 23rd. Ripple ETFs, meanwhile, show no movement at all, indicating that XRP investors are waiting for clearer direction from the market.

The current state of affairs suggests that the key signal to watch is not just price but also ETF flows. Analysts believe that if the selling streak continues or accelerates further, it will have a significant impact on the overall trend of these cryptocurrencies.