Investors pull $1.5B from spot Bitcoin ETFs in six days

Traders Union
All News
Crypto
Investors pull $1.5B from spot Bitcoin ETFs

Institutional reaction

Against this backdrop, some major players are already reducing their exposure to Bitcoin ETFs. Institutional market maker Jane Street cut its positions in such funds by around 70% in the first quarter, while Goldman Sachs reduced its Bitcoin ETF holdings by 10%.

Despite the recent outflow streak, the U.S. spot Bitcoin ETF market remains in positive territory for 2026. However, most of the inflows have gone to BlackRock’s IBIT, which has attracted $2.7 billion since the start of the year. Current momentum is already much weaker than in 2025, when the fund took in about $25 billion in net inflows.

IBIT’s competitors have mostly seen their performance deteriorate in 2026. U.S. spot Ethereum ETFs are already in net outflow territory for the year, while new altcoin ETFs have failed to attract comparable demand.

One of the few positive signals has been the launch of the Morgan Stanley Bitcoin Trust ETF (MSBT). The fund entered the market on April 8 and has already attracted $264 million in net inflows. That is more than the Bitcoin products offered by Invesco and WisdomTree, which launched back in January 2024.

The market had also been expecting a Bitcoin product from Truth Social, linked to Donald Trump. However, on Tuesday, the fund’s sponsor, asset manager Yorkville America, filed to withdraw several crypto ETF applications for Trump’s media company.

Bloomberg ETF analyst James Seyffart suggested that Yorkville America’s decision may have been linked to intense competition in the Bitcoin ETF market. In particular, MSBT offers one of the lowest fees in the segment at 0.14%, increasing pressure on new entrants.

Why investors are pulling money from Bitcoin ETFs

Outflows from Bitcoin ETFs do not necessarily mean that institutional investors are completely losing interest in Bitcoin. Rather, the trend may reflect profit-taking, portfolio rebalancing, and risk reduction after a period of strong capital inflows. For large investors, ETFs are a convenient way to gain exposure to Bitcoin, but when market expectations weaken or uncertainty rises, they can quickly reduce their positions without going directly to crypto exchanges.

Additional pressure comes from competition within the ETF market itself. The main inflows in 2026 have gone to BlackRock’s IBIT, while many other funds have faced outflows or weak demand. This suggests that capital is not simply leaving the segment, but concentrating in a few of the largest and most liquid products. Investors are choosing funds with lower fees, stronger brands, and deeper liquidity, while less competitive ETFs are gradually losing ground.

As a reminder, capital began returning to Bitcoin ETFs in March.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.