U.S. spot Bitcoin Exchange-Traded Funds (ETFs) recorded significant net outflows on Tuesday, February 19, 2026, with BlackRock's iShares Bitcoin Trust (IBIT) leading the withdrawals. IBIT saw approximately $84.2 million in net outflows, contributing to a total daily net outflow of around $133 million across all U.S. spot Bitcoin ETFs. Fidelity's FBTC fund also experienced an outflow of roughly $49 million.
The outflows occurred during a period of increased market volatility, with Bitcoin prices retreating from highs above $120,000 in late 2025 to trade in the mid-to-high $60,000 range. Traders are adopting a more cautious stance ahead of macroeconomic developments, such as potential Federal Reserve policy updates.
It is crucial to note that these ETF outflows do not represent BlackRock or other issuers selling their Bitcoin holdings. Instead, they reflect investor share redemptions. When investors redeem their ETF shares, the fund adjusts its portfolio accordingly. This process is a reflection of client behavior, not a strategic shift by the asset manager.
Despite the daily outflows, the broader institutional picture remains complex. Recent fourth-quarter SEC filings revealed significant repositioning among major investors. On one hand, entities like Jane Street ($276 million), Weiss Asset Management ($107.5 million), 59 North Capital ($99.8 million), and Abu Dhabi's sovereign investor Mubadala Investment (which increased its IBIT allocation by 45% to $630.7 million) were notable buyers. A mysterious Hong Kong entity named Laurore, linked to an individual named Zhang Hui, disclosed a massive single purchase of $436.2 million in IBIT shares.
Conversely, other institutions aggressively reduced exposure. Brevan Howard slashed its IBIT position by about 85%, from $2.4 billion to $273.5 million. Goldman Sachs also trimmed its exposure by roughly 40%, leaving close to $1 billion allocated to the product. This dispersion indicates institutions are treating Bitcoin ETFs as tactical balance-sheet tools rather than static, long-only allocations.
Trading volume across the ETF complex has cooled significantly from a record $14.7 billion on February 5 to just over $3 billion, signaling reduced arbitrage activity and short-term trading incentives. Analysts suggest the current phase represents a consolidation and capital rotation among holders rather than a broad-based institutional exit. The long-term cumulative inflows into products like IBIT remain strongly positive, and regulated Bitcoin products continue to attract institutional interest.
