In a recent market update, CryptoQuant analyst has noted that the total outflows from the all-time high (ATH) have now reached a staggering $5.55 billion.
Are investors panicking?
Bitcoin evangelists often argue that ETFs represent "sticky capital," meaning that institutional investors are encouraged to hold. They claim that giants like BlackRock and Fidelity have long-term horizons. Therefore, ETF flows are often viewed as "diamond hands" as opposed to retail investors who can be rather fickle.
However, such a thesis might be tested in the near future. The current chart shows a drawdown that is significantly deeper than the major correction of March 2025. The red shaded area, which represents the magnitude of capital flight, has plunged to a new record low.
If the white line (the Bitcoin price) continues to plummet toward the grey line (the ETF realized price), your run-of-the-mill institutional holders will be underwater.
Previous drawdowns, for comparison, saw rapid V-shaped recoveries. Some institutional investors likely rushed to buy the dip.
However, this crash indicates that institutional investors are not immune to fear. The capital was "flushed" rather than held. This, of course, challenges the thesis of perpetual institutional support.
The SoSoValue dashboard reveals a daily net outflow of $275.88 million as of Dec 26. The bleeding is led by BlackRock's IBIT, the undisputed market leader, which dumped $192.61 million in a single day.
It is worth noting that the ETFs still boast an eye-popping cumulative net inflow of $56.62 billion. However, the narrative of "eternal accumulation" is now being tested.
