IBIT holders lose 40% as Bitcoin falls

The average trader in the iShares Bitcoin Trust (IBIT) is now sitting on losses of about 40%, according to data from Bespoke Investment Group, reversing gains of roughly 30% seen at the market peak in mid-2025. The shift follows a sharp drop in Bitcoin’s price, which has fallen from a record $126,272 in October 2025 to around $60,750.

IBIT, which has drawn $60.77 billion in inflows since launching in January 2024, now holds about $44.42 billion in net assets. The difference represents an estimated $16 billion decline in value tied to the broader market downturn.

Record outflows signal sustained pressure

U.S. spot Bitcoin ETFs recorded $1.79 billion in net outflows in the week ending June 26, marking the second-largest weekly withdrawal since their debut. The only larger خروج came in February 2025, when $2.61 billion exited the funds.

Outflows have been persistent. IBIT alone saw $444.51 million withdrawn on a single Friday, extending its streak to seven consecutive days of net outflows. The previous day accounted for an even larger $696.29 million in withdrawals.

The broader trend is equally notable. Bitcoin ETFs have now posted seven straight weeks of net outflows, the longest negative stretch on record. Previous periods of sustained withdrawals lasted five weeks in early 2025 and again in early 2026.

Federal Reserve policy weighs on sentiment

The sustained pullback is closely tied to tightening financial conditions. The Federal Reserve held interest rates steady at its June 18 meeting but removed language suggesting future cuts, signaling a more hawkish stance.

Market pricing now reflects a growing expectation that rates could rise by December. A higher-for-longer rate environment increases borrowing costs and tends to pressure risk-sensitive assets such as cryptocurrencies.

At the same time, sentiment has deteriorated sharply. The Crypto Fear & Greed Index has dropped to 14, indicating “Extreme Fear,” as persistent selling continues across major funds.

Ethereum ETFs follow similar path

Ether-linked spot ETFs have also recorded seven consecutive weeks of outflows, totaling $273.34 million. These products now hold $8.38 billion in net assets, down from cumulative inflows of $10.90 billion.

A $12.85 million withdrawal in the most recent session came entirely from ETHA, the largest Ether ETF. Ether itself has fallen to around $1,600, remaining well below its highs earlier in the year and on track for a possible third consecutive quarterly decline.

Smaller crypto funds see selective inflows

While Bitcoin and Ether funds face heavy withdrawals, smaller digital asset ETFs are showing mixed but occasionally positive flows. Funds tied to Hyperliquid, Solana, and XRP collectively manage about $2 billion, far below the $72.82 billion in Bitcoin ETFs and $8.38 billion in Ether products.

Hyperliquid ETFs attracted $108.09 million on June 25 and an additional $1.82 million the following day, lifting total inflows to $293.92 million. XRP-linked funds added $15.63 million over the same period, while Solana ETFs recorded a modest $3.94 million outflow.

Market signals point to cautious positioning

The ongoing withdrawals highlight a broader shift in positioning as traders reduce exposure to risk assets. More than half of Bitcoin’s circulating supply is now estimated to be at a loss, underscoring the depth of the downturn.

Despite continued selling in major cryptocurrencies, the presence of inflows into smaller funds suggests capital is not fully leaving the sector. Instead, some traders appear to be reallocating toward assets with different fundamentals or perceived opportunities.

For now, fund flow trends remain a key signal. A stabilization in outflows would likely be one of the first indications that the market is finding a floor.