Bitcoin exchange-traded funds recorded more than $1.16 billion in net outflows across three trading days, while Binance retail Bitcoin inflows slumped to a multi-year low, according to data from SoSoValue and CryptoQuant.
On Tuesday, investors pulled another $116 million from U.S. spot Bitcoin ETFs, following $399 million on Monday and $643 million on Friday. The outflow streak brought the funds' net 2026 outflows to roughly $153 million, although Bitcoin itself traded about 2% higher over 24 hours near $78,000.
Separately, CryptoQuant analyst Darkfost reported that the 30-day average for Binance deposits smaller than one Bitcoin fell to 281 BTC. Comparable retail inflows peaked near 2,700 BTC during 2019-2021 and recovered to roughly 1,900 BTC after FTX collapsed before declining again. The data raises questions about whether U.S. spot Bitcoin ETFs are changing investor access and custody habits by offering brokerage exposure without direct BTC exchange deposits.
Bitwise head of research André Dragosch said the ETF withdrawals reflect a short-term risk-off environment rather than a structural shift in institutional sentiment. He cited a recent Bitwise survey of 15 institutions, none of which reduced Bitcoin ETF exposure during the bear market, and noted U.S. regulatory filings showed most institutional investor categories, apart from hedge funds, had largely maintained positions.
The outflows followed Binance's $6.3 billion hack on Thursday. Dragosch dismissed the idea that ETF custody is similarly exposed, noting institutional funds use cold storage at Coinbase custody, while the Binance incident affected internet-connected hot wallets. The Crypto Fear & Greed Index rose to 34 from 26 on Monday but remained in the "Fear" category.
