US-listed spot Bitcoin ETFs recorded $6.35 billion in net outflows over a trailing 30 trading days, the largest such decline since the products launched in January 2024, according to Galaxy Research. The outflows mark a sixth week of withdrawals and have pulled cumulative net flows down to $53.4 billion from a peak of $63 billion in October 2025. Galaxy Research said the daily outflows are still deepening day over day. Bitcoin has fallen 17.4% over the past month, pressured by an increase in US inflation and the ongoing war between the US and Iran.

This matters because sustained ETF outflows remove a structural bid that has anchored institutional positioning since early 2024. The six-week streak suggests more than tactical profit-taking — it points to a reallocation away from crypto exposure as macro uncertainty intensifies. However, BlackRock's Jay Jacobs said that daily outflow data can be noisy, citing examples like flows rotating from IBIT into the firm's iShares Bitcoin Premium Income ETF (BITA), which launched on Wednesday. The key is whether the outflow streak extends or stabilises. If flows flatten, the damage may be contained. If the trend accelerates, the institutional bid that underpinned prior rallies could be reversing.

Even without a trade, this matters for context. Funding rates remain positive at +0.5bp per eight hours, five times the 30-day average of +0.1bp, indicating leveraged longs have not yet capitulated despite the ETF exodus. Fear and Greed sits at 23, slightly above the 30-day average of 19, showing retail sentiment has not collapsed into forced selling territory. The divergence between institutional outflows and stable on-chain leverage suggests two separate cohorts — ETF holders are exiting, but derivative traders are not yet panicking. This creates a brittle equilibrium: if funding flips negative or liquidations spike, a cascade becomes more likely. Until then, the market appears to be absorbing ETF selling without breaking.

The signal to watch is whether the outflow streak extends and whether funding rates turn negative. If both occur, the setup may become a short on momentum. If outflows stabilise and funding holds positive, the setup suggests a range trade rather than a breakdown. The timeline is the next several trading days — if Galaxy's data shows further consecutive weeks of outflows when updated, the institutional retreat is confirmed and the risk skew tilts bearish.

Source: Cointelegraph