Bitcoin Spot ETFs Edge Toward a Fifth Consecutive Week of Outflows – $404 million Withdrawn This Week
By [Reporter Name] – February 21 2026
U.S.‑listed spot Bitcoin exchange‑traded funds (ETFs) logged another round of net redemptions on Thursday, pushing the weekly total to nearly $404 million. The sustained outflow pressure puts the sector on the brink of a five‑week losing streak and adds to a year‑to‑date (YTD) deficit of roughly $2.7 billion.
Weekly and Daily Flow Numbers
- Thursday’s net outflow: $165.8 million, according to data compiled by SoSoValue.
- Cumulative weekly outflows: $403.9 million (Thursday plus the prior four days).
- YTD withdrawals: $2.7 billion, representing a sizable reversal of the $53.9 billion that has flowed into Bitcoin ETFs since their inception.
The daily flow chart from SoSoValue illustrates a sharp contraction in investor cash, with Thursday’s numbers marking the latest dip.
Trading Activity Slumps
ETF trading volume fell 21 % over the past seven days, reaching its lowest level since late December 2025. The decay in turnover suggests a waning appetite among both retail and institutional participants for Bitcoin exposure via regulated funds.
BlackRock’s iShares Bitcoin Trust (IBIT) Leads the Drain
IBIT accounted for the lion’s share of the week’s outflows, with $368 million withdrawn, based on Farside.co.uk statistics. Other spot Bitcoin products saw modest activity, the most notable being the Fidelity Wise Origin Bitcoin Fund (FBTC), which lost about $50 million on Wednesday.
Institutional shifts have also been reported. Hedge fund Brevan Howard trimmed its IBIT position by roughly 85 % during the fourth quarter of 2025, signaling further dis‑interest from large‑scale investors.
Price Context: A Historically Weak Start
Bitcoin’s spot price is down approximately 22 % YTD, hovering near $66,000—a level comparable to the price at the April 2024 halving. Drops Analytics highlighted that, historically, Bitcoin tends to trade several multiples above the post‑halving price within two years, a pattern that is currently absent. Checkonchain data confirms that the first 50 days of 2026 represent the poorest annual start on record, surpassing the declines witnessed in 2018 and other down years.
Possible Drivers Behind the Outflows
| Factor | Explanation |
|---|---|
| Price weakness | A 22 % YTD decline makes the asset less attractive for new inflows while prompting existing holders to liquidate. |
| Halving expectations | With the next halving scheduled for 2028, the market may be discounting future upside, leading to a defensive posture. |
| Macro uncertainty | Rising interest rates, tightening fiscal conditions, and broader risk‑off sentiment have pressured crypto‑related assets. |
| Institutional repositioning | Large funds like Brevan Howard have reduced exposure, potentially prompting smaller investors to follow suit. |
Analysts caution that the current outflow pattern could be temporary if Bitcoin regains momentum or if broader financial markets stabilize. However, the depth of the weekly withdrawals and the stark decline in trading volumes underscore a pronounced shift in market sentiment.
Key Takeaways
- Five‑week outflow risk: Thursday’s data brings the sector within a whisker of a five‑consecutive‑week net outflow streak.
- IBIT as the primary driver: BlackRock’s flagship Bitcoin ETF absorbed more than 90 % of the week’s total outflows.
- Trading volume contraction: A 21 % drop in weekly turnover points to weakening participation across the board.
- Worst start on record: Bitcoin’s YTD performance and price level are the lowest for a comparable point in any calendar year since 2018.
- Investor sentiment is cautious: Both macro‑economic headwinds and sub‑par price performance appear to be prompting a reevaluation of Bitcoin exposure via ETFs.
Outlook: Should Bitcoin’s price stabilize above the $70,000 threshold and macro conditions improve, inflows could resume, especially if institutional players reassess their exposure. Until then, the spot Bitcoin ETF market is likely to remain under pressure, with outflows potentially extending into the next reporting week.
Source: https://cointelegraph.com/news/bitcoin-etfs-166-million-outflow-btc-worst-yearly-start?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
