Spot Bitcoin ETF Demand Slows Down In 2026: Here's Why

Spot Bitcoin ETFs are experiencing a slowdown, heading for a fourth consecutive month of net outflows as Bitcoin approaches a fifth negative monthly close. Net assets in US spot Bitcoin ETFs have dropped significantly from their peak near $170 billion in October 2025 to $84.3 billion, with cumulative net inflows falling to $54 billion. Data shows significant outflows in mid-February, with researcher Axel Adler Jr. noting that three consecutive positive sessions are needed to confirm renewed accumulation. The selling pressure is evident in holdings declines at major funds like BlackRock's IBIT and Fidelity's FBTC. This cooling trend aligns with macroeconomic factors, as the market enters what analyst Benjamin Cowen calls a “late-cycle restrictive digestion” phase, characterized by tight financial conditions due to high real yields making non-yielding assets like Bitcoin less attractive. Furthermore, gold ETFs have seen surges in inflows, repeatedly capturing capital when Bitcoin ETF demand weakens, suggesting investors are rotating toward assets with smaller price swings during risk-off periods.

(Source：Cointelegraph)