Investors recently pulled nearly $3.8 billion from U.S.-listed bitcoin exchange-traded funds (ETFs) over a five-week period. This is the longest such streak since February 2025. Just last week, $316 million was withdrawn, highlighting a significant trend.
The biggest loser was BlackRock’s IBIT fund, which saw outflows of $2.13 billion. This suggests that many institutions are staying away from bitcoin after a sharp decline in early October. Concerns have grown due to issues on offshore exchanges like Binance, which have raised alarm bells.
While this outflow resembles one from February last year, the current situation is less dire. Back then, $5 billion was pulled, contributing to a steep decline in bitcoin, which eventually fell to around $75,000 by early April. Today, bitcoin is trading at just under $65,000.
Experts point to several factors driving this risk aversion. Ongoing U.S.-Iran tensions, fresh global tariffs announced by President Trump, and technical chart indicators are all contributing to the cautious stance among investors.
A recent survey from CoinDesk revealed that 60% of cryptocurrency investors have developed a more cautious approach, preferring safer asset classes amid market volatility. Social media sentiment reflects this unease as well; Twitter hashtags like #BitcoinCrash garnered significant attention, indicating widespread concern among retail investors.
Given this backdrop, it’s essential to keep an eye on economic developments that could impact investor sentiment moving forward. Understanding the factors behind these trends can help investors make more informed decisions in the evolving cryptocurrency landscape.
For more on the current state of bitcoin investments, check out CoinDesk’s latest report here.
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