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According to Glassnode data, US Bitcoin spot ETFs have recorded the largest drop in their monitoring during the current market cycle after the October peak in history.
However, despite the recent outflows, the broader picture for ETFs remains constructive.
Bitcoin exchange-traded funds saw the deepest decline of the session with balances falling to 1.26 million BTC.
Glassnode data shows that since October, Balances decrease US Bitcoin Express Funds are around 100,300 BTC. At press time, the total shares amounted to about 1.26 million Bitcoin (BTC).
The contraction reflects continued net outflows, as investors withdraw capital from spot index funds, prompting the funds to reduce stakes. According to SoSoValue$1.6 billion of these products were withdrawn in January alone, extending a series of monthly flows that began. In November 2025.
The decline in ETF balances coincided with a broader market decline. Bitcoin has been trending lower since reaching a high of $126,000 in October. This weakness extends through 2026, making… It increases fear and lack Certainty throughout the market.
Although flash ETFs were considered a structural catalyst during Bitcoin’s rally, experts suggest that the same mechanism may have increased downward pressure during periods of recovery. At the beginning of February, Arthur Hayes argued that Institutional hedging activity by traders adds downward pressure on Bitcoin prices.
He added Glassnode: “Institutional de-risking has added structural weight to persistent vulnerability, reinforcing the wider risk-off environment.”
This pressure extends beyond ETF flows and includes increasing unrealized losses. According to Glassnode, the average entry price for US Bitcoin flash fund investors is about $83,980 per Bitcoin.
With Bitcoin trading at $67,349 at the time of writingThis payment is exposed Currently paper losses are around 20%.
Meanwhile, flows are not limited to Bitcoin only. Last week, BeInCrypto reported a $173 million exit Of digital asset funds. This was the fourth consecutive week of recoveries with total recoveries reaching $3.7 billion during this period.
Net inflows to Bitcoin ETFs remain at $53 billion despite recent flows
Despite the pessimism, some analysts continue to emphasize the long-term picture. Eric Balchunas, senior ETF analyst at Bloomberg, said: Cumulative net flows Bitcoin ETFs are still worth about $53 billion, from a peak of more than $63 billion in October 2025, even after recent flows.
“Our forecast (more optimistic than most of our peers) was between $5-15 billion in the first year. This is an inappropriate context when looking at or writing about the $8 billion in outflows from the 45% decline and/or the relationship between BTC and Wall Street, which has been very positive,” he added.
Taken together, the data suggest that the current correction reflects a reduction in cyclical risk rather than a structural reversal. ETF inflows have intensified the index’s upward and downward movements, integrating Bitcoin deeper into the dynamics of traditional capital markets.
While short-term pressure may continue amid broader macro uncertainty, the scale and speed of institutional adoption since launch suggests that Bitcoin’s integration into Wall Street portfolios remains valid.
