U.S. spot Bitcoin exchange-traded funds recorded $116 million in net outflows on Tuesday, bringing the total since Friday to $1.16 billion, according to SoSoValue data. Bitwise attributes the withdrawals to a short-term risk-off environment and weaker market sentiment rather than a structural change in institutional investors’ positions. A Bitwise survey of 15 institutions found that none had reduced their Bitcoin ETF exposure during the bear market, while regulatory filings showed that most institutional investor categories had largely maintained their holdings. Outflows nevertheless slowed, declining from $643 million on Friday and $399 million on Monday to $116 million on Tuesday, as the Crypto Fear & Greed Index rose to 34 and Bitcoin gained about 1.6% to trade near $78,000. Binance’s $6.3 billion hack raised concerns about investor confidence and security, but Bitwise says institutional funds held with Coinbase Custody are kept in cold wallets that are not connected to the Internet.
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