U.S.listed spot Bitcoin exchange-traded funds or ETFs faced a sharp decline last week, with $1.33 billion in net outflows, marking the weakest weekly performance since February 2025.
The losses happened during a shortened four-day trading week because of the Martin Luther King Jr. Day holiday. This shows a sudden change in investor sentiment after strong inflows in the previous weeks.
According to market data, selling was highest in the middle of the week. Bitcoin ETFs saw $709 million in outflows on Wednesday and $483 million on Tuesday. Outflows slowed toward the end of the week, with $32 million on Thursday and $104 million on Friday.
BlackRock’s iShares Bitcoin Trust or IBIT led the outflows, especially on Tuesday and Wednesday. IBIT holds about $69.75 billion in net assets, which is roughly 3.9 percent of the total Bitcoin supply.
Despite last week’s decline, spot Bitcoin ETFs have still performed well over the long term, attracting $56.5 billion in net inflows over the past two years. The total net assets of these ETFs are now $115.9 billion.
Ether ETFs Face Selling Pressure
Spot Ether ETFs also saw significant outflows last week, following a similar trend as Bitcoin. Over the four-day trading period, a total of $611 million left Ether-focused funds.
Wednesday was the biggest day of selling, with investors redeeming $298 million. Some smaller inflows helped reduce the impact, including Grayscale’s ETH trust adding $9.16 million and Fidelity’s FETH gaining $4.4 million.
This week’s outflows contrast sharply with the previous week, when Ether ETFs had $479 million in net inflows. The reversal highlights changing investor sentiment and caution in the crypto market as funds adjust to market volatility.
Other Crypto ETFs Show Mixed Performance
Not all crypto ETFs experienced losses last week. Solana (SOL) spot ETFs saw net inflows of $9.6 million, showing strength despite the broader market decline. On the other hand, XRP ETFs faced net outflows of $40.6 million for the week, although some of the losses were recovered with small inflows toward the end of the week.
Experts believe the drop in ETF flows is linked to a price correction in the cryptocurrency market. Data from shows that Bitcoin investors are realizing net losses for the first time since October 2023.
This pattern suggests the market is entering an early phase of a bear cycle, similar to what was seen between 2021 and 2022, where prices corrected after strong rallies and investors became more cautious.
The recent outflows reflect a combination of shortened trading schedules, midweek selling pressure, and large fund withdrawals.
While the week’s performance was weak, the overall long-term trend for Bitcoin and Ethereum ETFs remains positive, as investors continue to diversify portfolios and participate in crypto markets cautiously.
