US-based spot Bitcoin ETFs experienced a total of $203.8 million in net outflows on February 23, 2026, as per SoSoValue data, even as a top market analyst argued the long-term bullish case for Bitcoin (BTC) remains intact. At the time of publication, BTC was trading near $64,148 per CoinMarketCap data, and is currently at its lowest level for the month.
Bitcoin is increasingly sensitive to changes in macro-allocations. This has been demonstrated through these net outflow figures. This indicates that the current ETFs’ positioning exerts a greater degree of short-term impact on the BTC price relative to spot demand.
Blackrock’s IBIT Accounts for Largest Outflows
BlackRock’s IBIT experienced the largest net outflows at $116.4 million, while Fidelity’s FBTC had net outflows of $27.9 million. Net outflows were seen by Grayscale’s GBTC at $13.0 million, and Bitwise’s BITB accounted for $43.6 million in net outflows.
On the other hand, only VanEck’s HODL reported a net inflow on the same day, with a net inflow of $6.35 million. In addition to VanEck’s HODL and a number of small funds, such as those offered by Invesco, Franklin, WisdomTree, and Hashdex, reported no flow activity.
Although there were significant redemptions, the cumulative net inflows for U.S.-based spot BTC ETFs remain extremely high at $53.81 billion. This suggests sustained, long-term participation by institutional investors.
Source: SoSoValue
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ETF Flows Have Transformed Bitcoin
EMJ Capital founder Eric Jackson stated that due to the recent ETF flows, BTC has become a beta-based trade of technology. He cited its increased correlation with BlackRock’s technology-focused IGV ETF.
Jackson further noted that institutional investors are now the “marginal buyer” in this cycle. They are adjusting their exposure to BTC alongside their allocation to equities.
This has increased the degree of downside volatility of BTC in times of market stress. It also represents a major departure from previous cycles where retail traders drove up prices during bull runs.
Jackson said that retail money rotated towards AI and software-related equities. He added that gold outperformed BTC and risk assets as a macro-hedge. This left Bitcoin temporarily lagging in the safe-haven narrative.
Analyst Calls Sell-Off Purification
While ETF outflows may result in near-term weakness for Bitcoin, Jackson believes the outflows may be part of a structural reset. Jackson described the sell-off as a “purification” phase that removes short-term capital from the ETF space.
Historically, each cycle has transitioned from “weaker holders” to long-term investors. This was represented by retail (in 2017), funds (in 2021), and ETF allocators (in 2025).
Jackson believes that the next wave of demand for BTC will originate from sovereign wealth funds, pension capital, and corporate treasuries. These entities typically deploy multi-decade allocations to alternative assets. They rarely adjust portfolio holdings each quarter. This results in longer Bitcoin holding periods.
Stablecoin Supply Signals Liquidity
Jackson also pointed to the expansion of stablecoin supplies on exchanges. He argued that this factor is a leading indicator for renewed upside in the price of Bitcoin.
An increase in on-chain dollar liquidity would represent an increase in fresh buying power. This would help to separate the price of Bitcoin from the price movements of equities in the technology sector.
If that liquidity is absent, macro bottom target levels for Bitcoin, such as approximately $50,000, remain possible. This is due to continued ETF selling pressure and relatively weak spot demand for Bitcoin.
Why This Matters
ETF flows currently act as the primary short-term price driver for Bitcoin, and as such, shift market control from retail traders to institutional allocators.
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