BTC ETFs see over $130M in outflows as risk aversion deepens

US-listed spot Bitcoin exchange-traded funds continued to face sustained selling pressure on Wednesday as negative market sentiment persisted and Bitcoin briefly fell below $66,000.

Spot Bitcoin ETFs recorded $133.3 million in net outflows on Wednesday, bringing total weekly losses to $238 million, according to data from SoSoValue.

The largest share of withdrawals came from BlackRock’s iShares Bitcoin Trust, which saw more than $84 million exit during the session.

If the funds fail to stabilise in Thursday and Friday trading, the current period would mark the first five-week consecutive outflow streak for Bitcoin ETFs since last March.

ETFs continue to struggle

So far this year, spot Bitcoin ETFs have recorded around $2.5 billion in net outflows, reducing total assets under management to $83.6 billion.

The continued withdrawals reflect weakening institutional demand, which has failed to provide support during recent market volatility.

Trading activity has also remained muted compared with earlier periods, suggesting limited investor appetite for risk assets in the current environment.

The sustained decline comes as Bitcoin struggles to regain momentum following repeated attempts to move higher in recent weeks.

Mixed performance across crypto ETFs

Other cryptocurrency-linked funds also posted modest losses during Wednesday’s session.

Ether ETFs recorded daily outflows of $41.8 million, while XRP funds saw $2.2 million leave.

In contrast, Solana ETFs continued to attract investor interest.

The funds have recorded inflows for six consecutive sessions, with year-to-date gains of around $113 million.

However, trading activity in Solana products remains subdued compared with previous months.

February inflows of about $9 million so far are well below the $105 million seen in January and the $148 million in December 2025.

Federal Reserve signals weigh on risk appetite

Market sentiment has also been pressured by recent signals from the US central bank.

Minutes from the January meeting of the Federal Open Market Committee showed that policymakers were divided over the necessity and timing of further interest rate cuts.

Several officials indicated that additional easing could be warranted if inflation continues to decline, while others warned that premature cuts could undermine the central bank’s 2% inflation target.

The cautiously balanced tone was seen as less supportive for risk assets.

The stance has reinforced expectations of tighter monetary conditions and supported the US dollar.

The Dollar Index rose to a more than two-week high of 97.69 on Wednesday.

Rising geopolitical tensions add to pressure

Geopolitical developments have further dampened investor confidence.

CBS reported on Wednesday that the US military is prepared for possible strikes on Iran as early as Saturday.

However, Donald Trump has not yet made a final decision.

Trump has repeatedly demanded that Iran end its nuclear programme and has warned that force could be used if no agreement is reached.

According to the report, US naval assets are already positioned in the region, with additional forces en route to the Middle East.

Separately, the third round of US-mediated talks between Ukraine and Russia concluded in Geneva on Wednesday without a major breakthrough, highlighting continued disagreements over occupied territories.

The combination of tighter monetary policy expectations and rising geopolitical uncertainty has triggered a broader risk-off tone across financial markets.

Safe-haven assets such as gold climbed above $5,000, while risk-sensitive assets remained under pressure.

Bitcoin was trading below $67,000 on Thursday and approaching a lower consolidation range near $65,759.