US Spot Bitcoin ETFs Post Largest Cycle Drawdown, Balances Fall by 100,300 BTC
According to information from Glassnode, US spot Bitcoin exchange-traded funds (ETFs) have recorded their largest steadiness drawdown of the present market cycle following the early October all-time high.
Nonetheless, regardless of the latest outflows, the broader ETF image nonetheless stays constructive.
Bitcoin ETFs See Deepest Cycle Pullback as Balances Fall to 1.26 Million BTC
Glassnode information exhibits that since October, US spot Bitcoin ETF balances have declined by roughly 100,300 BTC. At press time, complete holdings stood at roughly 1.26 million BTC.
The contraction displays sustained internet outflows, as traders have withdrawn capital from spot ETFs, main funds to scale back holdings. According to SoSoValue, $1.6 billion was pulled from these merchandise in January alone, extending a streak of month-to-month outflows that started in November 2025.
The decline in ETF balances has unfolded alongside a broader market downturn. Bitcoin has trended decrease since reaching its file high of $126,000 in October. The weak spot has spilled into 2026, fueling elevated fear and uncertainty throughout the market.
Although spot ETFs had been broadly seen as a structural catalyst throughout Bitcoin’s rally, consultants recommend the identical mechanism could have intensified draw back stress in periods of redemptions. In early February, Arthur Hayes argued that institutional vendor hedging exercise is amplifying downward stress on BTC costs.
“Institutional de-risking has added structural weight to the continued weak spot, reinforcing the broader risk-off setting,” Glassnode added.
The pressure extends past ETF outflows and into mounting unrealized losses. According to Glassnode, the common entry value for US spot Bitcoin ETF traders stands at roughly $83,980 per BTC.
With Bitcoin buying and selling at $67,349 at the time of writing, this cohort is at the moment sitting on paper losses of roughly 20%.
Meanwhile, the outflows should not remoted to Bitcoin. BeInCrypto reported $173 million exited digital asset funds final week. This marked the fourth consecutive week of redemptions, totaling $3.7 billion for the interval.
Bitcoin ETF Net Inflows Still at $53 Billion Despite Recent Outflows
Despite the pessimism, some analysts proceed to emphasise the longer-term image. Bloomberg senior ETF analyst Eric Balchunas famous that cumulative net inflows into Bitcoin ETFs nonetheless stand at roughly $53 billion, down from a peak of over $63 billion in October 2025, even after latest outflows.
“Our (extra bullish than most of our friends) prediction was $5-15b in first yr. This is imp context to contemplate when wanting/writing concerning the $8b in outflows since 45% decline and/or the connection bt btc and Wall avenue, which has been overwhelmingly constructive,” he added.
Taken collectively, the info recommend the present retracement displays cyclical danger discount somewhat than a structural reversal. ETF flows have amplified each upside and draw back strikes, embedding Bitcoin extra deeply into conventional capital markets dynamics.
While short-term stress could persist amid broader macro uncertainty, the dimensions and pace of institutional adoption since launch point out that Bitcoin’s integration into Wall Street portfolios stays intact.
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