Spot Bitcoin ETF Assets Drop Below $100 Billion Amid Crypto Market Sell-Off

The total assets in spot Bitcoin (BTC) ETFs have fallen below $100 billion on Tuesday, as a result of $272 million in outflows.

SoSoValue data shows that this is the first time since April 2025 that spot Bitcoin ETF assets under management have dropped below the $100 billion mark, after reaching an all-time high of $168 billion in October.

The decline coincides with a broader sell-off in the cryptocurrency market, with Bitcoin plunging below $74,000 on Tuesday. According to CoinGecko, the global cryptocurrency market capitalization has decreased from $3.11 trillion to $2.64 trillion over the past week.

Altcoin funds see small inflows as Bitcoin ETFs continue to struggle

After a brief surge on Monday, spot Bitcoin ETFs once again saw outflows, resulting in a total of almost $1.3 billion in outflows for the year due to ongoing market volatility.

Meanwhile, altcoin ETFs tracking Ether (ETH), XRP (XRP), and Solana (SOL) saw modest inflows of $14 million, $19.6 million, and $1.2 million, respectively.

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Is the adoption of digital currencies expanding beyond traditional ETFs?

The ongoing decline in Bitcoin ETFs coincides with BTC trading below the ETF creation cost basis of $84,000, indicating that new ETF shares are being issued at a loss and putting pressure on fund flows.

Industry experts suggest that this downturn is unlikely to trigger further widespread sell-offs in ETFs.

“I believe that the majority of assets held in spot BTC ETFs will remain in place,” stated ETF analyst Nate Geraci on Monday.

Thomas Restout, CEO of institutional liquidity provider B2C2, shared a similar sentiment, noting that institutional ETF investors are typically resilient. However, he hinted at a potential shift towards onchain trading.

“The advantage of institutions entering the market and purchasing ETFs is that they are more resistant. They are willing to hold onto their views and positions for longer periods of time,” Restout said on a recent episode of the Rulematch Spot On podcast.

“I believe the next step in this transformation is institutions actively trading cryptocurrencies, rather than solely relying on securitized ETFs. We anticipate that the next wave of institutions will be the ones directly trading the underlying assets,” he added.

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