Bitcoin ETF selling deepens as crypto market drawdown accelerates

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Bitcoin ETF selling deepens

Highlights

Spot Bitcoin ETFs saw $545M in daily outflows as BTC slid toward $70K, pushing weekly ETF flows into negative territory.
Analysts say ETF investors remain relatively resilient, with only ~6% of assets exiting despite deep price drawdowns.
Altcoin ETF flows diverged, with Ether seeing outflows while XRP funds posted modest inflows amid selective rotation.

Spot Bitcoin ETFs recorded $545 million in net outflows on the day, according to SoSoValue data.

The move pushed weekly flows into negative territory, with $255 million in net outflows so far. On a year-to-date basis, the funds have attracted $3.5 billion in inflows but seen $5.4 billion in redemptions, leaving them net negative by roughly $1.8 billion. Total assets under management across spot Bitcoin ETFs now stand at $93.5 billion. The ETF weakness reflects broader market conditions, with total crypto market capitalization down about 20% this year, falling from around $3 trillion to $2.5 trillion, according to CoinGecko.

ETF investors show resilience despite market drawdown

Despite the recent selling pressure, analysts say Bitcoin ETF investors have largely remained committed through the downturn. Bloomberg ETF analyst James Seyffart noted that cumulative net inflows of $54.8 billion are only about 13% below the October peak of $62.9 billion. He described the pullback as relatively contained given the scale of earlier inflows.

Senior Bloomberg ETF analyst Eric Balchunas added that only around 6% of total assets have exited Bitcoin ETFs so far. He highlighted that most investors appear to be holding positions even as prices fall and many positions remain underwater. Balchunas also pointed out that BlackRock’s iShares Bitcoin ETF briefly reached $100 billion in assets before falling back to around $60 billion. Even at that level, he said, it remains the fastest ETF in history to reach $60 billion in assets.

Altcoin ETF flows remain mixed

While Bitcoin ETFs faced heavy redemptions, flows into altcoin-linked funds were more mixed. Ether ETFs recorded $79.5 million in outflows on Wednesday, reflecting continued pressure on the second-largest cryptocurrency. XRP-focused funds, however, saw modest inflows of $4.8 million, indicating selective investor interest.

Solana ETFs moved back into negative territory, posting $6.7 million in outflows. The divergence suggests that investors are rotating selectively rather than exiting digital asset exposure entirely. Market participants continue to monitor whether ETF flows stabilize if Bitcoin finds support near current levels. For now, ETF activity remains closely tied to broader price action across crypto markets.

Recently we wrote that the crypto market extended its sharp downturn, with total capitalization falling to around $2.44 trillion, down 5.38% (24h) as risk aversion intensified.

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