Spot Bitcoin ETFs Dump $434M as BTC Wicks to $60K Support
BlackRock and Fidelity led a $434 million exit from Bitcoin ETFs on Feb. 5, marking a third day of outflows as price action tests the $60,000 level.
U.S. spot Bitcoin ETFs posted their third consecutive day of redemptions on Feb. 5, shedding $434 million in a single session. The outflow coincides with Bitcoin momentarily wicking down to $60,000, signaling that the institutional cohort is actively de-risking rather than buying the dip.
Institutional Capitulation, Not Rotation
Data from SoSoValue confirms the exit was broad-based, with industry heavyweights leading the retreat. BlackRock’s IBIT, typically the liquidity anchor, saw $175 million in net outflows. Fidelity’s FBTC followed with $109 million in withdrawals. This synchronization among top issuers suggests a shift in sentiment from accumulation to capital preservation.
“The fresh outflow data confirms that ETFs are no longer a stabilizing bid; they are now amplifying the downside.”
The selling pressure wasn’t limited to Bitcoin. While some market participants hoped for a rotation into risk-on alts, Ethereum spot ETFs also recorded a net outflow of $80.8 million on the same day, led by Fidelity’s FETH (-$55.8M). This contradicts narratives of a capital flight from BTC to ETH, painting a picture of a broader crypto-market exit.
The $80 Billion Backstop
Despite the aggressive flush, the structural thesis remains intact. Total assets under management (AUM) for Bitcoin ETFs sit at approximately $80.8 billion, representing 6.3% of Bitcoin’s total market cap. Cumulative net inflows still exceed $54 billion. However, the correlation between spot price weakness and ETF redemptions indicates that this capital is more price-sensitive than previously estimated.
With Bitcoin hovering near critical technical support at $60,000, the market is now watching for a reversal in flows. Continued outflows from IBIT and FBTC could force a re-evaluation of the $60k floor.
