U.S. spot Bitcoin exchange-traded funds have recorded five consecutive days of withdrawals totaling approximately $1.44 billion, focusing attention on institutional demand as fear spreads across crypto markets. BlackRock's IBIT has carried most of the selling pressure, though some investors are still buying.
IBIT accounts for bulk of redemptions
Wednesday saw $299.8 million leave U.S. spot funds, with IBIT accounting for $269.7 million of that total. Over the five-day stretch, nearly three-quarters of withdrawals reportedly came from BlackRock's fund.
The pressure is not entirely new. IBIT recorded a $405.3 million outflow on November 2, its largest since June. The outflows were described as client redemptions, not BlackRock liquidating its own holdings.
Fear gauge shifts, but analyst urges caution
The Bitcoin Fear and Greed Index has moved from greed into fear territory. On-chain analyst Willy Woo argued that fear alone does not confirm a bearish market cycle, pointing to historical patterns in which fear became a genuine bear-market signal when prices continued printing new lows. He said the market is far from making new lows and described the sentiment shift as a potential buying opportunity rather than an immediate warning.
Other sentiment data was less encouraging. Santiment data showed bearish comments outnumbering bullish ones for BTC, ETH and XRP. Wall Street's fear gauge also spiked following a sharp Nasdaq selloff.
Morgan Stanley trust draws inflows
Morgan Stanley's Bitcoin Trust, or MSBT, attracted approximately $51 million across Monday, Tuesday and Wednesday. Grayscale Bitcoin Trust continued to record withdrawals.
Despite the recent selling, spot funds still hold approximately $55 billion in cumulative net inflows since their 2024 launch. The immediate question for BTC is whether institutional demand can stabilize. ETF outflows remain substantial, but the broader picture is not a complete institutional retreat.
