Investors continue to pull significant funds from U.S.-listed spot Bitcoin ETFs, with a record $1 billion withdrawn on Tuesday and another $750 million on Wednesday. Over the past week, nearly $3 billion has flowed out of these Bitcoin ETFs, marking the worst outflow period since their inception a year ago.
This wave of selling pressure coincides with a sharp decline in Bitcoin and other cryptocurrency prices. The iShares Bitcoin Trust (IBIT), which had been up 1% as recently as February 20, is now down more than 13%. Similarly, the iShares Ethereum Trust (ETHA) has fallen even more dramatically, from a 20% loss on February 20 to a 33% decline today.
Market Sentiment and Crypto Losses
The broader risk-off sentiment in financial markets, fueled by concerns over trade wars and global economic growth, has contributed to the downturn in cryptocurrency ETFs. However, the crypto sector has been hit particularly hard after the massive $1.5 billion hack of Bybit last week. Hackers exploited vulnerabilities in Bybit’s security systems, resulting in one of the largest thefts in crypto history and significant losses for the exchange.
Despite the heavy outflows, spot U.S. crypto ETFs have seen a net inflow of $2.1 billion for the year. IBIT (+$2.9 billion) and ETHA (+$806 million) have been the top performers, while the Grayscale Bitcoin Trust (GBTC) (-$758 million) and Grayscale Ethereum Trust (ETHE) (-$404 million) have experienced the largest outflows.
If spot Bitcoin ETF flows turn negative for the year, it will signal a significant shift in the market.
Gold ETFs Gain Momentum Amid Crypto Struggles
In stark contrast to the downturn in cryptocurrency ETFs, gold ETFs are seeing strong inflows. Over the past week, gold funds have received around $4 billion, bringing the total inflows to more than $5 billion since the start of the year.
Gold’s performance is significantly outpacing Bitcoin in 2025. The SPDR Gold Trust (GLD) is up 8.6% year-to-date, while Bitcoin has experienced a sharp slump. Investors are flocking to gold as a safe-haven asset in the face of uncertainty in the crypto market and broader financial markets.
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