Bitcoin sees $1.4B exit from spot ETFs, marking third largest outflow ever

US spot Bitcoin ETFs shed $1.42 billion in net outflows last week, making it the third largest weekly exodus these funds have ever recorded. It wasn’t an isolated event, either. This was the third consecutive week of heavy redemptions, pushing the three-week total past $3.5 billion.

The numbers behind the selloff

BlackRock’s IBIT, the largest spot Bitcoin ETF by assets, was responsible for the lion’s share of the damage. The fund accounted for approximately $966 million in outflows during the week, with single-day redemptions reaching as high as $448 million.

Across all spot Bitcoin ETFs, funds collectively sold around 19,021 BTC during the period. That’s roughly equivalent to 42 days of newly mined Bitcoin supply hitting the market all at once.

Bitcoin’s price reflected the pressure, oscillating between $73,500 and $76,900 throughout the week. The Crypto Fear & Greed Index sat firmly in “fear” territory, which tracks with the broader mood among market participants.

Why institutions are pulling back

The macro backdrop is doing Bitcoin no favors right now. Rising Treasury yields have been the headline villain, making risk-free government bonds more attractive relative to volatile assets like crypto. Geopolitical tensions have added another layer of uncertainty.

When large funds redeem shares, the ETF issuer has to sell the underlying Bitcoin to meet those redemptions. That selling creates downward price pressure, which can trigger more fear, which leads to more redemptions. The 19,021 BTC sold by ETFs in a single week illustrates this dynamic. Spot market participants absorbed some of that selling, which prevented a sharper price decline.

What this means for investors

The concentration of outflows in IBIT is particularly notable. BlackRock’s product has been the bellwether for institutional adoption since spot ETFs launched. When IBIT is leading outflows rather than inflows, it suggests the most sophisticated allocators in the market are repositioning.

Over $3.5 billion has already left in three weeks. If that pace continues, it could push Bitcoin below the $73,000 support level that held during the recent trading range.

The fact that 42 days’ worth of mined supply was dumped onto the market without causing a dramatic crash suggests underlying demand still exists. Someone was buying those 19,021 BTC.

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