U.S. Bitcoin ETFs lost $5.8B in early 2026 amid profit-taking, though long-term inflows and institutional accumulation persist.

U.S. spot Bitcoin ETFs saw $5.8 billion in outflows over three months in early 2026, with $465 million leaving in late February, driven by profit-taking as Bitcoin hovered between $60,000 and $66,000. BlackRock’s IBIT and Fidelity’s FBTC led the withdrawals, reducing total assets to about $95 billion. Despite this, annual inflows remain positive. Meanwhile, Abu Dhabi’s Mubadala and Al Warda quietly accumulated over $1 billion in IBIT shares in Q4 2025, boosting holdings by 46% during a 23% Bitcoin drop, signaling long-term confidence. A Hong Kong firm, Laurore, bought $436 million in IBIT, hinting at possible Chinese institutional interest. Market makers and arbitrage funds hold 55%–75% of IBIT, maintaining hedged positions rather than directional bets, according to analyst Markus Thielen, who warns ETF stability reflects short-term trading, not long-term conviction.