Assets under management in US spot Bitcoin exchange-traded funds slipped below $100 billion on Tuesday, following renewed investor withdrawals and a sharp downturn across the broader cryptocurrency market.
According to data from SoSoValue, spot Bitcoin ETFs recorded $272 million in net outflows on Tuesday, pushing total assets below the $100 billion mark for the first time since April 2025.
The decline follows a peak of about $168 billion in October, highlighting the scale of the recent retracement in digital asset valuations.
The move came as Bitcoin prices weakened significantly, with the world’s largest cryptocurrency sliding below $74,000 during Tuesday’s session.
The broader crypto market also suffered heavy losses, with total market capitalisation falling from $3.11 trillion to $2.64 trillion over the past week, according to data from CoinGecko.
ETF outflows resume after brief rebound
The latest round of withdrawals followed a short-lived recovery in investor appetite earlier in the week.
On Monday, spot Bitcoin ETFs attracted $562 million in net inflows, marking their strongest single-day intake since mid-January.
That rebound, however, proved temporary. Funds resumed losses on Tuesday, bringing year-to-date outflows to nearly $1.3 billion.
Market participants said the renewed selling reflects ongoing volatility and fragile confidence in the digital asset space.
The weakness in Bitcoin ETFs has coincided with the cryptocurrency trading below the estimated ETF creation cost basis of $84,000.
This suggests that new ETF shares are being issued at a loss, placing additional pressure on fund flows and discouraging fresh allocations.
By contrast, exchange-traded funds linked to major alternative cryptocurrencies showed modest resilience.
ETFs tracking Ether, XRP and Solana recorded net inflows of $14 million, $19.6 million and $1.2 million, respectively, indicating selective investor interest outside Bitcoin.
Analysts downplay risk of mass liquidation
Despite the slide in assets, market observers said the downturn is unlikely to trigger widespread selling across Bitcoin ETFs.
ETF analyst Nate Geraci wrote on X on Monday, “My guess is vast majority of assets in spot BTC ETFs stay put regardless.”
Analysts noted that many ETF investors entered the market with a long-term perspective and may be less inclined to react to short-term price swings.
As a result, while flows remain volatile, the risk of a disorderly exit appears limited for now.
Bitcoin showed tentative signs of stabilisation on Wednesday, trading above $76,000 after falling to its lowest levels since early November 2024 the previous day.
However, derivatives traders have remained defensive, reflecting a cautious stance amid continued uncertainty.
Market participants said the longer-term trend remains bearish, with some investors targeting potential downside toward the $70,000 level.
Geopolitical tensions weigh on risk appetite
The latest sell-off has also been shaped by rising geopolitical risks.
Bitcoin slipped below $73,000 on Tuesday for the first time since November 2024 after reports that the US military shot down an Iranian drone that “aggressively” approached the USS Abraham Lincoln aircraft carrier in the Arabian Sea.
The escalation has weighed on global risk sentiment, reducing investor appetite for speculative assets such as cryptocurrencies.
Although Trump’s special envoy, Steve Witkoff, is scheduled to meet Iranian officials later this week, diplomatic efforts have faced complications.
Following the incident, Iran said it wanted talks to take place in Oman rather than Turkey and limited to bilateral discussions on nuclear issues, adding further uncertainty to negotiations.
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