Bitcoin ETFs Post $316M Outflows as Hedge Funds Turn Net Long

Key Insights:

• Bitcoin ETFs saw $316M in weekly outflows.
• Five-week outflow streak marked the longest since March 2025.
• Hedge funds flipped to aggressive net long positioning.

Bitcoin ETFs recorded heavy withdrawals in the United States between Feb. 16 and Feb. 20 as institutional positioning shifted. Data showed net outflows of $316 million during the period, even as hedge funds turned net long on Bitcoin. The divergence reflected portfolio adjustments rather than a broad exit from the asset class.

The move placed Bitcoin ETFs at the center of a broader liquidity debate. While flows weakened, positioning data suggested that institutions adjusted their exposure rather than abandoning risk. Bitcoin ETFs remained structurally large products despite the recent drawdown.

Bitcoin ETFs Extend Outflow Streak

Wu Blockchain reported that spot Bitcoin ETFs logged $316 million in net redemptions over the five-day window. Ethereum spot ETFs also recorded $123 million in net outflows during the same stretch, while Solana and XRP spot ETFs posted modest inflows. The rotation indicated selective risk appetite within crypto-linked exchange-traded products.

Source: X

CryptosRus stated that Bitcoin ETFs had now posted five consecutive weeks of outflows, marking the longest streak since March 2025. The trend developed as rate uncertainty and tariff tensions weighed on broader markets. ETF flows often act as an early pressure valve during tightening liquidity conditions.

SoSoValue figures showed total crypto ETF assets under management stood at $146.7 billion across 29 active products issued by 11 firms. Despite the streak of withdrawals, cumulative net inflows since launch remained positive. That context suggested capital was repositioning rather than exiting permanently.

Institutions Increase Long Exposure

That Martini Guy reported that hedge funds and large institutions flipped to net long Bitcoin exposure. The positioning marked the most aggressive long stance since the April 2025 crash. Such shifts typically occur when sophisticated traders anticipate stabilization after volatility.

Source: X

Mister Crypto noted that more than 100,000 Bitcoin had left ETFs since the asset’s all-time high last year. Even so, Bitcoin’s price remained above $60,000 during the recent withdrawals. The resilience implied that secondary-market demand absorbed the supply exiting the funds.

The divergence between ETF flows and futures positioning created a complex signal. While ETF investors trimmed exposure, derivatives traders expanded bullish bets. That imbalance suggested institutions differentiated between short-term liquidity management and directional conviction.

Macro Backdrop Shapes Bitcoin ETFs

CryptosRus argued that ETF outflows reflected caution within a tighter macro environment. Rate policy uncertainty and risk-off behavior influenced capital allocation decisions across asset classes. Bitcoin ETFs mirrored that adjustment rather than driving it.

Crypto ETF performance data showed that last week recorded net outflows of $423.4 million across products. The prior month registered redemptions of $3.24 billion, while the weakest month of 2025 saw $4.22 billion leave. Those figures illustrated sensitivity to macro conditions rather than structural decline.

At the same time, recent aggregate crypto ETF flows showed a net inflow of $91.8 million, driven largely by Bitcoin and Solana products. That reversal indicated selective demand returned when volatility eased. The pattern reinforced the idea that liquidity conditions dictated short-term direction.

Bitcoin ETFs now operate as a bridge between traditional finance and digital assets. Their flows reflect institutional risk management cycles more than retail sentiment. As such, short bursts of redemptions can coexist with rising long exposure in derivatives markets.

The next near-term variable for Bitcoin ETFs remains liquidity stabilization. If rate expectations moderate and risk appetite improves, ETF flows could reverse quickly. Until then, Bitcoin’s ability to hold above the $60,000 region will likely determine whether institutional conviction strengthens further.

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