Bitcoin spot ETFs are experiencing a historic period, and not in a good way. For the first time since their launch, capital outflows have reached unprecedented highs. The general market sentiment has deteriorated, with the Fear & Greed Index falling to 20, its lowest level in several months. $6.4 billion have been withdrawn from Bitcoin index funds in just 30 days. A hemorrhage that raises questions among investors and marks a turning point in the current crypto market cycle.
A record outflow that worries
According to data compiled by Cointelegraph and confirmed by several market analysts, US Bitcoin spot ETFs have experienced 30 consecutive days of net outflows, an absolute record. The previous record was from September 2024, with approximately $3.2 billion in withdrawals over a similar period. The new figure of $6.4 billion therefore more than doubles that previous peak.
This wave of outflows occurs in a context of a prolonged bear market for Bitcoin, whose price is hovering around $64,000 after hitting a low of $58,000 in early June. The fall is dizzying for those who bought at the all-time high of $109,000 reached in January 2026.
Why are investors leaving Bitcoin ETFs?
Several factors explain this massive flight of capital:
- Macroeconomic uncertainty: US monetary policy remains restrictive, with interest rates kept at high levels by the Federal Reserve. Investors prefer risk-free bond yields over Bitcoin’s volatility.
- Chain liquidations: The prolonged decline in Bitcoin’s price has triggered cascading liquidations among leveraged holders, amplifying selling pressure on ETFs.
- Rotation into other assets: Some institutional investors are reallocating their capital to assets deemed safer or to Ethereum, which is benefiting from renewed interest with advances in its technical roadmap.
- Post-halving disillusionment: The April 2026 halving did not trigger the expected rally, disappointing many investors who were counting on a repeat of the bullish post-halving pattern seen in previous cycles.
Franklin Templeton fights back with innovative ETFs
In this gloomy climate, asset manager Franklin Templeton has filed an application with the SEC to launch innovative ETFs that would convert stock dividends into Bitcoin. An innovative approach that could appeal to investors seeking yield while gaining indirect exposure to the crypto market.
This initiative comes as Strategy (formerly MicroStrategy), the largest corporate holder of Bitcoin, faces questions about its ability to retain its holdings. Our detailed analysis explains why Strategy could be forced to sell 50,000 BTC by 2028. Some analysts estimate that Strategy could be forced to sell part of its 50,000 BTC by 2028 to repay its convertible bonds.
A glimmer of hope from Japan
On the positive news side, a Japanese corporate pension fund has announced its intention to allocate 1% of its assets to cryptocurrencies, according to the Nikkei. This decision, although modest in percentage, is symbolically important as it represents a first for Japan, a country known for its regulatory caution regarding cryptocurrencies.
This allocation could pave the way for other Japanese pension funds, a market representing trillions of dollars in assets under management. If only 1% of these funds were allocated to cryptocurrencies, the influx of
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