Spot Bitcoin exchange-traded funds (ETFs) are on monitor to publish a fourth consecutive month of web outflows as Bitcoin (BTC) approaches a fifth unfavourable month-to-month shut in February. The slowdown is seen throughout the shrinking fund balances and the bearish rolling web movement information, particularly when measured towards competing asset ETFs.
With Bitcoin worth and the spot ETF holdings trending decrease since October, buyers are trying to find solutions on what the longer term might maintain for BTC.
Bitcoin ETFs dominate headlines
Web property held in US spot Bitcoin ETFs peaked close to $170 billion in October 2025 and now stand at $84.3 billion. The cumulative web inflows have fallen to roughly $54 billion from the $63 billion all-time excessive. Since July 2025, cumulative web flows have totaled simply $5 billion, underscoring the sharp drop in capital inflows.
Bitcoin researcher Axel Adler Jr. tracked seven classes between Feb. 12 and Feb. 19 and located the web ETF outflows totaled 11,042 BTC. Feb. 12 marked the biggest single-day discount at 6,120 BTC, or about $416 million. The Feb. 17 and Feb. 18 classes noticed back-to-back outflows of 1,520 and 1,980 BTC, respectively. Solely two classes had been constructive, with the Feb. 6 session including 5,900 BTC to the funds.
Adler stated that three consecutive constructive classes are wanted to verify renewed accumulation within the ETFs. Till then, the flows proceed to behave as a supply of provide for the market.
The macroeconomic information align with the cooling development. The ETFs have shed about 87,000 BTC since November 2025, together with roughly 15,000 BTC in February. The overall ETF balances now sit close to 1.26 million BTC, down from the 1.36 million BTC peak.
The promoting stress from the biggest BTC funds has been measured. BlackRock’s IBIT holdings declined to 759,000 BTC from 806,000 BTC, a 6% discount. Constancy’s FBTC dropped to 186,000 BTC from 213,000 BTC, a 12.6% decline.
Bitcoin worth has fallen much more sharply than the ETF balances, whereas the spot market demand has appeared inadequate to completely take up the broader market stress.
Gold steals the highlight from the BTC ETFs
Over the previous two years, the Bitcoin and gold ETFs have rotated management primarily based on the 90-day rolling flows. The Bitcoin 90-day inflows peaked close to $16 billion in March 2024, cooled to $3 to $4 billion between June and October, after which surged to $21.6 billion in December 2024.
The gold ETFs took a unique route. The flows stayed unfavourable till July 2024, then accelerated to $30 billion by April 2025. Throughout March and April 2025, the Bitcoin 90-day flows slipped to unfavourable $2 billion.
Gold peaked once more at $36 billion in October 2025, whereas the Bitcoin inflows light into the ultimate quarter. In January 2026, the gold flows reached $29 billion earlier than easing to $21 billion by mid-February as Bitcoin flows remained in unfavourable territory.
The information present a repeated handoff between the 2 property. The intervals of weakening Bitcoin ETF demand aligned with the surges in gold inflows, notably between March and October 2025.
In relative phrases, the gold ETFs captured incremental capital as buyers leaned towards the asset with smaller worth swings and the longer monitor file throughout risk-off phases.
Related: Bitcoin ETFs shed $166M as BTC heads for worst start in years
“Restrictive digestion” hits the Bitcoin demand
ITC Crypto founder Benjamin Cowen classifies the primary quarter of 2026 as a “late-cycle restrictive digestion” section for the equities and the crypto markets.
The US Federal Reserve ended quantitative tightening in December 2025, halting the stability sheet runoff, however the financial coverage stays restrictive relative to the market progress expectations. The federal funds charge nonetheless sits above the 2-year Treasury yield, whereas the 10-year yield trades close to 4.1% and the 10-year actual yield holds round 1.7%–1.8%, retaining the monetary circumstances tight.
The constructive actual yields imply buyers can earn inflation-adjusted returns within the fastened revenue markets, elevating the chance price of holding non-yielding property corresponding to Bitcoin.
Cowen famous that within the prior tightening cycles, Bitcoin worth weakened earlier than equities confirmed stress. In 2019, BTC worth rolled over months forward of the broader weak point in equities.
Traditionally, the sturdy ETF inflows have adopted the falling actual yields or a transparent easing cycle. Neither situation has developed but, which can clarify the slowdown in demand for Bitcoin ETFs since October 2025.
Related: Bitcoin ignores US Supreme Court Trump tariff strike amid talk of $150B refund
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