Bitcoin ETFs have seen outflows for four months, with total assets dropping significantly as investors shift to gold.
Bitcoin exchange-traded funds (ETFs) in the U.S. have faced net outflows for four consecutive months, with assets under management plummeting from $170 billion in October 2025 to just $84.3 billion now.
The overall net inflow has dropped from a high of $63 billion to $54 billion, with only $5 billion being drawn in since July 2025.
Currently, ETF holdings have decreased from a peak of 1.36 million BTC to 1.26 million BTC. Major players in the market are also seeing declines: BlackRock's IBIT has lost 6% of its reserves, now holding 759,000 BTC, while Fidelity's FBTC has decreased by 12.6%, down to 186,000 BTC.
Analyst Axel Adler Jr. noted that from February 12 to 19, a total of 11,042 BTC was withdrawn from these funds, with the largest single-day outflow occurring on February 12, when 6,120 BTC left.
Institutions aren't buying. They're selling. ā11,042 BTC left ETFs in 7 days. Exchanges are flooded with supply.
Full breakdown in āļø Morning Brief 109 štwitter.com/AxelAdlerJr/status/2024397434818859427
ā Axel šš Adler Jr (@AxelAdlerJr) February 19, 2026
To reverse this trend, ETFs would need to post profits for at least three consecutive sessions, which has not yet occurred, leading to ongoing selling pressure.
Investors appear to be shifting capital from cryptocurrencies to more stable assets. Between March and October 2025, interest in Bitcoin ETFs waned, whereas gold funds saw a significant uptick in inflows, reaching $36 billion in October over a 90-day period, and maintaining $21 billion by mid-February 2026. This shift indicates a preference for gold during risk-off periods due to its historical stability and lower volatility compared to Bitcoin.
Macroeconomic Influences
Benjamin Cowen, founder of ITC Crypto, characterized the first quarter of 2026 as a time of "restrictive decline" for both stock and cryptocurrency markets. Although the Federal Reserve paused its quantitative tightening in December 2025, monetary policy remains stringent, with the federal funds rate surpassing yields on two-year Treasury bonds and hovering around 4.1% for ten-year securities.
This positive real yield makes traditional investments more appealing, reducing the attractiveness of Bitcoin. Cowen pointed out that stable demand for ETFs typically arises only when real yields decline or monetary policy loosens, conditions that have not yet been met. Notably, Goldman Sachs also scaled back its positions in Bitcoin and Ethereum spot funds during the fourth quarter of 2025.
