U.S. spot Bitcoin ETFs recorded about $3.8 billion in net redemptions across five consecutive weeks, the longest streak since February 2025, bringing year-to-date outflows to about $4.5 billion and printing roughly $316 million in net redemptions in the most recent week. BlackRock’s IBIT registered roughly $2.10–$2.13 billion of withdrawals over the five-week span, including about $303.5 million last week, and Fidelity’s FBTC accounted for about $954 million of outflows; Ether ETFs experienced weekly redemptions near $123 million, while cumulative spot Bitcoin ETF inflows since the 2024 launches remain in the $53–$54 billion range. Bitcoin traded near $64,300, down about 25 percent year-to-date in 2026 and about 47 percent from the $126,000 peak, with near-term supports around $65,000, a tighter band at $64,200–$64,400, and a broader liquidity pocket near $60,000 after a concentrated sell-off erased roughly $100 billion of crypto market value within 24 hours. Drivers included tariff uncertainty tied to Section 122 timelines, geopolitical tensions, and rotation into store-of-value assets; on-chain and institutional signals showed increased exchange deposits averaging about 1.58 BTC per depositing address and a roughly $760 million transfer to Binance, and hedge funds and large allocators trimmed positions with a reported 28 percent deallocation in late 2025. Sustained ETF outflows increased realized volatility, widened spreads, and pressured futures basis and borrow rates, which complicated hedging for corporate treasuries, raised financing costs for miners and other capital-intensive operators, increased mark-to-market sensitivity for companies with Bitcoin exposure, and prompted greater inventory churn for market makers as primary outflows fed secondary selling. Near-term scenarios hinge on flows and policy clarity: a decisive reclaim above $70,000 would invite marginal risk capital back into ETFs and ease primary market pressure, while a confirmed break below $65,000 would bring $60,000 into focus for a potential liquidity sweep that could flush stops and either produce a rebound or confirm a deeper drawdown; halving-related supply dynamics may provide tailwinds by mid-2026 while tariff headlines and legal uncertainty could keep risk premia elevated. Indicators to watch include weekly primary market flows for IBIT and FBTC, developments in the Section 122 tariff policy timeline and related court actions, cross-asset signals such as gold, the dollar and equity volatility, and derivatives metrics including options skew near $60,000 and futures basis across major venues.

Source: https://web3businessnews.com/crypto/bitcoin-etf-outflows-five-weeks/

Hosted on Acast. See acast.com/privacy for more information.