Bitcoin ETF Outflows Hit $1.16B as Bitwise Calls Selling Short-Term

US spot Bitcoin exchange-traded funds recorded $116 million in net outflows on Tuesday, bringing withdrawals over three trading sessions to $1.16 billion, according to SoSoValue. The decline followed $643 million in Friday outflows and $399 million on Monday, marking a three-day withdrawal streak.

Bitwise head of research André Dragosch attributed the selling to a short-term risk-off environment rather than a structural retreat by institutional investors. A Bitwise survey of 15 institutions found that none had reduced their Bitcoin ETF exposure during the bear market, while US regulatory filings showed that most institutional categories, except hedge funds, had maintained their positions.

Retail investors continue to hold the majority of Bitcoin ETF shares and tend to react more sharply to volatility, according to Bitwise. The Crypto Fear & Greed Index improved to 34 from 26, although it remained in “Fear” territory, while Bitcoin rose about 1.6% to trade near $78,000. Despite the recent outflows, the funds’ net outflows for 2026 stood at approximately $153 million.

Sentiment also weakened following reports of a $6.3 billion Binance hack, which has raised questions about ETF custody and the security of major exchange operations. Dragosch said the market response was driven more by broader risk sentiment than by fears that ETF holdings were unsafe.