Bitcoin exchange-traded funds (ETFs) have fallen to their lowest assets under management (AUM) level of the year following a wave of sustained outflows.
Spot Bitcoin ETF assets dropped below $100 billion on Tuesday after recording $272 million in net outflows, according to data from SoSoValue. It marked the first time AUM has dipped under the $100 billion mark since April 2025, after reaching a peak of roughly $168 billion in October.
The decline coincided with a broader sell-off across the crypto market. Bitcoin fell below $74,000 on Tuesday, while total cryptocurrency market capitalization slid from $3.11 trillion to $2.64 trillion over the past week, based on CoinGecko data.
Altcoin funds see modest inflows
The latest Bitcoin ETF outflows followed a short-lived rebound on Monday, when spot Bitcoin ETFs recorded $562 million in net inflows. However, losses resumed the following day, pushing year-to-date outflows to nearly $1.3 billion amid continued market volatility.
In contrast, ETFs tied to major altcoins saw small inflows, with Ether funds attracting $14 million, XRP ETFs pulling in $19.6 million, and Solana products recording $1.2 million.
Is institutional adoption moving beyond ETFs?
The continued outflows from Bitcoin ETFs come as BTC trades below the ETF creation cost basis of $84,000. This means new ETF shares are being created at a loss, adding pressure to fund flows.
Despite the downturn, analysts say the weakness is unlikely to spark another wave of large-scale ETF selling. “My guess is the vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.
Thomas Restout, CEO of institutional liquidity provider B2C2, shared a similar view, saying ETF investors tend to be more durable in their positioning. However, he suggested momentum may be building toward greater onchain participation.
“One of the advantages of institutions entering through ETFs is that they’re far more resilient—they tend to hold their views and positions for longer,” Restout said on Monday during the Rulematch Spot On podcast.
He added that the next phase of market evolution could see institutions move beyond securitized ETF exposure and begin trading crypto assets directly. “We expect the next wave of institutional players to be those actively trading the underlying assets themselves,” he said.
