Bitcoin ETFs Suffer Significant Outflows Amid Shift in Institutional Appetite

US spot Bitcoin exchange-traded funds (ETFs) have been experiencing a period of significant outflows in 2026. According to data from SosoValue, the funds have collectively lost nearly $4.5 billion since the start of the year.

The majority of these losses occurred within a five-week stretch starting in late January, during which time Bitcoin's price struggled. During this period, BlackRock's iShares Bitcoin Trust (IBIT) shed over $2.1 billion, while Fidelity's Wise Origin Bitcoin Fund (FBTC) saw more than $954 million withdrawn.

CryptoQuant analyst J.A. Maartun noted that Bitcoin ETF outflows have decreased to $8.3 billion from their October all-time high, marking the weakest year since the funds' launch. The steady stream of withdrawals suggests a shift in institutional appetite away from digital assets and towards traditional safe havens.

However, market observers emphasize that the long-term footprint of Bitcoin ETFs remains intact. Bloomberg senior ETF analyst Eric Balchunas highlighted that despite recent outflows, the funds have significantly outperformed early market expectations, which had projected first-year inflows of just $5 billion to $15 billion.