The bleeding continues for US-listed spot Bitcoin ETFs, with a $165.8 million outflow recorded on Thursday, according to SoSoValue data. This brings the weekly losses to $403.9 million, and year-to-date (YTD) losses to a staggering $2.7 billion, signaling one of the worst starts for Bitcoin in years.
A Closer Look at the Decline
Trading activity in these ETFs has seen a significant downturn, dropping 21% over the week to its lowest levels since late December. This decline in investor activity is a clear indicator of weakening sentiment. Despite cumulative net inflows of $53.9 billion, the year has started on a sour note, with Bitcoin prices down roughly 22% YTD, as per TradingView data.
BlackRock’s IBIT Takes the Hit
BlackRock’s iShares Bitcoin Trust ETF (IBIT) has borne the brunt of the outflows, accounting for $368 million of the losses this week, according to Farside data. Other US-listed spot Bitcoin ETFs have seen minimal activity, with the Fidelity Wise Origin Bitcoin Fund (FBTC) experiencing outflows of about $50 million on Wednesday.
Institutional Investors Pull Back
Major financial institutions have also been reducing their exposure to IBIT. Brevan Howard, for instance, cut its holding in the fund by up to 85% in the fourth quarter of 2025. This move reflects a broader trend of institutional skepticism and risk aversion in the current market environment.
Historical Context and Market Sentiment
The current market conditions are particularly concerning when viewed in the context of Bitcoin’s halving events. Drops Analytics noted that nearly two years after the April 2024 halving, Bitcoin is trading around $66,000, which is roughly the same level as during the halving itself. This is unprecedented, as in previous cycles, Bitcoin typically surged three to ten times above halving levels by this point.
“This has never happened before. In previous cycles, BTC was already three to 10 times above halving levels by now,”
According to Checkonchain data, Bitcoin is off to its worst yearly start on record, surpassing even the down years like 2018. This historical comparison underscores the severity of the current market sentiment and the challenges facing Bitcoin investors.
Looking Ahead
Despite the current downturn, some analysts remain cautiously optimistic. They point to the cyclical nature of Bitcoin’s price movements and the potential for a rebound in the coming months. However, the immediate outlook remains bleak, with continued outflows and low trading volumes likely to persist in the near term.
The year 2026 is shaping up to be a challenging one for Bitcoin, and the performance of these ETFs is a clear barometer of investor sentiment. As the market continues to navigate these turbulent waters, the focus will be on whether institutional and retail investors will regain their confidence in the world’s leading cryptocurrency.
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