Investors have recently withdrawn nearly $3.8 billion from U.S.-listed spot bitcoin exchange-traded funds (ETFs) over a stretch of five consecutive weeks, marking the longest outflow period since February 2025. In the last week alone, an additional $316 million was extracted, as reported by SoSoValue. This trend indicates that institutional investors remain hesitant to engage with the leading cryptocurrency, a sentiment that has strengthened following the early October market downturn, which highlighted vulnerabilities linked to offshore exchanges, particularly Binance.
BlackRock’s IBIT fund has been the most significantly affected, reporting a staggering loss of $2.13 billion during this five-week stretch. The trend reflects a broader risk aversion among institutions towards bitcoin after the volatility experienced in recent weeks. While the current outflow aligns in duration with the similar situation observed in February of the previous year, the monetary impact appears less severe this time, with $3.8 billion withdrawn compared to the $5 billion during the earlier episode. The previous outflow period contributed to a notable dip in the market, where bitcoin’s price plummeted to as low as $75,000 in early April.
Currently, bitcoin is trading well below that mark, hovering just under $65,000. Analysts suggest that several factors are contributing to this ongoing risk aversion, including heightened tensions between the U.S. and Iran, a recent global tariff announcement from President Donald Trump, and unfavorable technical price-chart indicators. As the market continues to respond to these developments, investors are left weighing the inherent risks of engaging with cryptocurrencies at this time.
