Bitcoin ETFs Shed $1.16B; Bitwise Calls It Short-Term — SkimNews
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- Bitcoin ETFs in the U.S. logged more than $1 billion in net outflows over three trading days, reaching $1.16 billion from Friday through Tuesday, according to SoSoValue data; the latest withdrawals left 2026 net outflows at approximately $153 million.
- André Dragosch, Bitwise’s head of research, attributed the withdrawals to a short-term risk-off environment rather than a structural change in institutional sentiment or fears over ETF holding safety.
- Bitwise found in a survey of 15 institutions that none had reduced their Bitcoin ETF exposure during the bear market; U.S. regulatory filings also showed most institutional categories except hedge funds had largely maintained positions.
- Bitcoin ETFs remain majority-held by retail investors, who react more strongly to volatility; Bitwise found inflows closely track broader crypto market sentiment, which weakened around the Binance hack.
- Binance’s $6.3 billion hack affected internet-connected hot wallets, while institutional funds held at Coinbase custody are kept in cold storage that is not connected to the internet.
- Crypto Fear & Greed Index rose to 34 from 26 on Monday as Bitcoin gained about 1.6% over 24 hours to near $78,000; Tuesday’s $116 million ETF outflow was well below Monday’s $399 million and Friday’s $643 million.
Why it matters: For ETF investors, the material change is a three-session, $1.16 billion outflow after the Binance hack, not a broad institutional retreat: none of 15 institutions surveyed by Bitwise cut exposure. The custody detail also matters—the hack hit internet-connected hot wallets, while funds at Coinbase custody use cold storage disconnected from the internet.
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