Bitcoin Spot ETFs Shed 8 Billion Dollars Over Two Months

Bitcoin News

Spot Bitcoin (BTC) exchange-traded funds have shed more than 8 billion dollars over roughly two months, a sustained bleed now reshaping the fund-flow narrative around the asset. Fund-flow data show cumulative net inflows into the spot Bitcoin ETF complex sliding from a peak of 59.34 billion dollars down to 51.22 billion dollars, unwinding a meaningful slice of the demand that powered earlier rallies. The withdrawals gathered pace from mid-May and have not fully reversed, feeding a broader debate over whether institutional allocators are rotating away from the asset. For a product class once framed as a one-way inflow story, the persistent redemptions mark a notable shift in positioning across the market.

The pressure on Bitcoin funds looks comparatively mild alongside the exodus from gold. The largest gold-backed ETF, the World Gold Council’s GLD, has recorded roughly 14.4 billion dollars in outflows since the start of March, according to fund-flow data. In March alone investors pulled about 8.5 billion dollars — the single largest monthly withdrawal in the fund’s 22-year history. That figure dwarfs the pace of Bitcoin redemptions and reframes the comparison entirely: the roughly 9.6 billion dollars that left all spot Bitcoin ETFs since their October peak is around 50 percent smaller than what fled a single gold vehicle after a run of record all-time highs earlier in the year.

The gold outflows have followed a clear cadence. After the record 8.5 billion dollar March hit, GLD lost a further 1.7 billion dollars in April, a more modest 872 million dollars in May, and 3.2 billion dollars in June. Mid-month data for July then showed withdrawals collapsing to under 50 million dollars, prompting analysts to question whether the metal is setting up for a comeback. With roughly 130 billion dollars in assets under management, GLD remains more than twice the size of every spot Bitcoin ETF combined, which makes a like-for-like flow comparison difficult but underscores how broad this year’s retreat from stores of value has been.

Those redemptions coincided with a punishing move in the underlying metal. Gold peaked near 5,600 dollars an ounce in late January before shedding nearly 30 percent of its value, sliding to about 4,000 dollars an ounce by Friday’s close. A drawdown of that scale in what is traditionally viewed as a defensive hedge complicates the simple thesis that capital has simply rotated out of Bitcoin and into bullion. Instead, both assets have absorbed heavy selling, and the deep pullback in gold suggests investors trimmed risk across the board rather than favouring one hedge over another during a broadening bear market.

Bitcoin funds were not spared their own worst stretch. June proved the heaviest month for the spot Bitcoin ETF complex, with more than 4.5 billion dollars exiting over the period — a monthly figure that actually exceeded GLD’s own June outflows. That single month accounted for the bulk of the two-month, 8 billion dollar drawdown and dragged the cumulative inflow tally sharply lower. The scale of the June exodus is the clearest evidence that redemptions were not a slow drip but a concentrated wave of de-risking, and it explains why the fund-flow picture turned decisively negative just as broader sentiment deteriorated.

Price action tracked the fund flows closely. Bitcoin was rejected near 95,000 dollars in January, then stalled again around 83,000 dollars in mid-May as the redemption wave began in earnest. From there the decline accelerated, carving out a multi-year low near 57,700 dollars on July 1. The asset has since clawed back part of those losses, but the recovery remains tentative and the fund-flow backdrop uncertain enough to cap conviction on a larger rebound. Until inflows return in a durable way, each attempt higher faces the same headwind of investors still willing to sell into strength rather than accumulate.

COINOTAG’s proprietary 42-indicator composite scoring engine rates the 63,703 dollar support at 83/100 — its strongest reading — driven by the confluence of the EMA 20, a high-volume node and the Ichimoku Tenkan line, making it the pivot bulls must defend with spot trading near 64,125 dollars, up 1.16 percent on the day. To the upside, the engine scores 67,090 dollar resistance at 59/100, anchored by the Keltner upper band and the Fibonacci 0.382 retracement. Derivatives lean long: a positive 0.0041 percent funding rate, 12.5 billion dollars in open interest and a 1.66 long/short ratio (62.4 percent long) flag crowded upside bets. Yet the Fear and Greed Index sits at 25 (Extreme Fear) and Bitcoin dominance near 69.8 percent keeps altcoins pinned; a daily close below 63,703 dollars would invalidate the bullish thesis and expose the 61,764 dollar shelf.