Bitcoin ETFs See $6 Billion Exit as Institutional Demand Cools
Demand for US-listed spot Bitcoin exchange-traded funds (ETFs) has reversed, with the 12 merchandise recording $1.6 billion in internet withdrawals this month.
Data from SoSoValue reveals that this marks a 3rd consecutive month of adverse flows for the ETF merchandise. During this era, the funds misplaced round $6 billion in flows.
Bitcoin ETF Demand Reverses Course After Three Months of Sustained Selling
Meanwhile, these month-to-month outflows signify the longest streak of losses because the US SEC approved the merchandise in January 2024.
Market observers famous that persistent outflows point out that demand for Bitcoin products has entered a sustained decline.
Notably, knowledge from CryptoQuant additional corroborates the downtrend. The 12 Bitcoin funds have collectively skilled an exodus of roughly 4,595 BTC because the begin of 2026.
This year-to-date determine highlights a major shift in investor sentiment in comparison with the record-breaking inflows of earlier years. Indeed, the BTC products had pulled in almost 40,000 BTC throughout the identical interval final 12 months.
Market observers attribute the exodus to a “narrative exhaustion” that has coincided with Bitcoin’s lackluster price performance.
Since reaching an all-time high of greater than $126,000 in October 2025, BTC’s price has declined by more than 37%.
In mild of this, Jim Bianco, founding father of Bianco Research, prompt that the interval of fast institutional adoption has reached its logical conclusion.
“Markets are discounting mechanisms. They worth the narrative lengthy earlier than the occasion happens,” Bianco said.
He famous that BTC’s transition into conventional finance fueled a 400% rally from the preliminary 2023 filings to the political shifts of late 2024.
However, he characterised the climb to $126,000 in late 2025 as a “zombie rally” pushed by residual momentum moderately than contemporary capital.
According to him, the present market apathy is additional evidenced by a scarcity of responsiveness to historically bullish headlines.
Thus, even optimistic developments such as the appointment of crypto-friendly officials to economic posts have did not spark a restoration.
Consequently, Bianco suggests the “adoption story” is now absolutely priced into the market, returning Bitcoin to its standing as a high-volatility threat asset.
This shift leaves ETF buyers to grapple with the truth of a maturing market that’s presently in retreat.
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