Bitcoin ETFs recorded outflows during seven of eight major selloffs, challenging expectations that Wall Street investors would support prices during downturns.
A new DWF Labs report shared with CryptoSlate found that US spot Bitcoin exchange-traded funds consistently lost money during market declines of at least 15% since their January 2024 launch, while attracting inflows throughout all nine major rallies.
The findings challenge the belief that institutional adoption has created a dependable source of buying during market stress. They also expose a paradox in Bitcoin's changing market structure: selloffs have become slower and less frequent, even as ETF investors continue withdrawing billions during downturns.
