Spot Bitcoin exchange-traded funds (ETFs) saw assets under management fall below the $100 billion mark after fresh outflows of $272 million, pushing year-to-date withdrawals close to $1.3 billion.
According to data from SoSoValue, spot Bitcoin ETF AUM slipped under $100 billion on Tuesday, marking the first drop below this level since April 2025. The sector had previously peaked at around $168 billion in October before sentiment began to weaken.
The decline came amid a broader sell-off across the cryptocurrency market. Bitcoin prices slid below $74,000 on Tuesday, while total global crypto market capitalization fell sharply to $2.64 trillion from $3.11 trillion over the past week, based on data from CoinGecko.
Bitcoin ETF outflows resume despite brief rebound
The latest wave of outflows followed a short-lived recovery in investor demand on Monday, when spot Bitcoin ETFs recorded $562 million in net inflows. However, selling pressure quickly returned, lifting cumulative outflows for the year to nearly $1.3 billion as market volatility persisted.
While Bitcoin-focused funds struggled, ETFs tracking major altcoins attracted modest inflows. Products linked to Ethereum, XRP, and Solana recorded net inflows of $14 million, $19.6 million, and $1.2 million respectively, suggesting selective interest beyond Bitcoin.
Institutional interest may shift beyond ETFs
The continued selling in Bitcoin ETFs comes as BTC trades below the estimated ETF creation cost basis of around $84,000. This implies that some new ETF shares may be issued at a loss, adding pressure on fund flows.
Despite the downturn, analysts believe large-scale redemptions are unlikely. ETF analyst Nate Geraci said most assets held in spot Bitcoin ETFs are likely to remain invested despite short-term price weakness.
Thomas Restout, CEO of institutional liquidity provider B2C2, echoed this view, noting that institutional ETF investors tend to be more resilient and willing to hold positions through volatility. However, he suggested that the next phase of institutional involvement could involve direct on-chain trading rather than reliance on securitized ETF products.
As market conditions evolve, this potential shift may reshape how institutions gain exposure to Bitcoin and the broader digital asset market.
