Bitcoin ETFs See $3.8B Outflows as Fear Index Plunges

U.S. spot Bitcoin ETFs have endured five straight weeks of net outflows totaling nearly $3.8 billion, the longest streak in months, signaling institutional caution. With the Crypto Fear & Greed Index dipping to extreme lows around 14, investors grapple with regulatory headwinds and macro pressures. Bitcoin holds near $68,000 despite the bleed, highlighting resilient on-chain dynamics.

Data from Crypto Ticker reveals spot Bitcoin ETFs shed about $400 million in the third week of February 2026 alone, contributing to four consecutive weeks of broader crypto product outflows reaching $3.8 billion. This pushed total assets under management down to $133 billion, amid a market cap of $2.41 trillion. CoinDesk and Cointelegraph confirm the five-week run, with last week's $316 million exit underscoring persistent de-risking. Institutional players cite geopolitical tensions, macroeconomic uncertainty, and stalled regulatory progress—like the White House stablecoin roundtable yielding no consensus on yields or the CLARITY Act—as key drivers. Google searches for Bitcoin crash spiked alongside the Fear Index hitting record lows of 5-14, per AInvest analysis. Yet, Bitcoin's price stabilized around $66,500-$68,000, buoyed by corporate treasury buys contrasting ETF sales. X discussions from analysts like CryptaLeaks note the $85.31 billion remaining AUM still represents 6.3% of BTC's supply, suggesting selective caution rather than outright abandonment. Sovereign funds like UAE's Mubadala reportedly upped stakes, per posts, indicating a shift to long-term holders.

These outflows reflect eroding short-term confidence among institutions, potentially extending BTC's consolidation phase until macro clarity emerges. For investors, it underscores diversification needs amid volatility, while highlighting ETFs' role in amplifying sentiment swings. Prolonged pressure could test $65,000 support, but resilient hodlers may view it as a buy-the-dip cue.

Bitcoin ETF outflows expose vulnerabilities in institutional flows amid fear-driven markets, yet underlying adoption persists. As regulations evolve and tensions ease, inflows could rebound swiftly. Institutions should balance caution with strategic positioning for the inevitable recovery.

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