Bitcoin Spot ETFs See Massive Outflows While Morgan Stanley Prepares Launch in United States

Bitcoin investors experienced a bumpy week as the cryptocurrency’s spot ETFs faced their first net outflow in a month.

After four consecutive weeks of inflows totaling $2.21 billion, the tide turned as traders pulled back from these investment vehicles.

According to data from SoSoValue, the 12 Bitcoin spot ETFs collectively posted a net withdrawal of $296.18 million last week.

Thursday and Friday were particularly rough, with combined outflows exceeding $396 million.

Friday alone saw $225.48 million exit the market—the largest single-day outflow since March 3, 2026.

Individual ETFs Show Mixed Performance

Among the funds, BlackRock IBIT recorded the largest redemptions at $158.07 million.

Other major withdrawals came from Grayscale GBTCBitcoin fund”], wise BITB”,”Bitcoin fund”], and ARK/21Shares ARKB.45 million and $10.28 million, respectively.

On the positive side, Fidelity’s FBTC was the only ETF to record an inflow, attracting $46.88 million last week.

Other ETFs, including Invesco BTCO, Valkyrie BRRR, WisdomTree BTCW, Franklin Templeton EZBC, and Hashdex DEFI, reported no net flows during the same period.

Overall, Bitcoin spot ETFs have now accumulated $55.93 billion in total net inflows, with total net assets reaching $84.77 billion.

Morgan Stanley Plans Entry Into Bitcoin ETFs

Looking ahead, the market may get a boost from the anticipated launch of a new Bitcoin spot ETF from Morgan Stanley.

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Analysts report the proposed MSBT fund would carry a 0.14% fee, the lowest in the market, slightly under Grayscale’s 0.15%.

If approved by the SEC, MSBT would mark the first Bitcoin spot ETF directly offered by a US bank.

Morgan Stanley currently manages $1.9 trillion in assets and has a market capitalization of $251 billion, indicating its entry could significantly impact the market.

Ethereum Spot ETFs Also Struggle

Ethereum ETFs mirrored Bitcoin’s negative trend, posting $206.58 million in net withdrawals over the past week.

The Ethereum spot market has accumulated a total net inflow of $11.52 billion, with total net assets valued at $11.33 billion.

This continued outflow reflects broader investor caution in the crypto space, even as markets attempt to recover from the 2025 bear cycle.

Impact and Consequences

The recent outflows signal potential short-term weakness in crypto investor sentiment.

Extended withdrawals could pressure Bitcoin and Ethereum prices if sustained.

Conversely, the anticipated Morgan Stanley ETF may attract institutional investors seeking low-fee exposure, potentially reversing the trend.

ETF performance is increasingly being viewed as a barometer of investor confidence in mainstream adoption of cryptocurrencies.

What’s Next?

Market participants will be watching how the SEC responds to Morgan Stanley’s filing and whether the MSBT ETF can secure approval.

Meanwhile, ongoing volatility in crypto ETFs may continue, driven by price fluctuations, regulatory developments, and investor sentiment.

Traders may also monitor flows in individual funds, such as BlackRock IBIT and Grayscale GBTC, to anticipate larger market movements.

Summary

Bitcoin spot ETFs experienced their first net outflow in a month, led by heavy withdrawals from BlackRock IBIT, Grayscale GBTC, Bitwise BITB, and ARK/21Shares ARKB.

Fidelity’s FBTC was the sole ETF recording an inflow.

Meanwhile, Ethereum ETFs extended negative flows for a second consecutive week.

Morgan Stanley’s planned low-fee Bitcoin ETF could reshape investor activity if approved.

Bulleted Takeaways

• Bitcoin spot ETFs posted a net outflow of $296.18 million last week after four consecutive weeks of inflows
• BlackRock IBIT led redemptions with $158.07 million withdrawn
• Fidelity’s FBTC was the only Bitcoin ETF to record a net inflow ($46.88 million)
• Ethereum ETFs also faced net withdrawals totaling $206.58 million
• Total net inflows for Bitcoin spot ETFs remain $55.93 billion, with assets at $84.77 billion
• Morgan Stanley plans to launch a Bitcoin spot ETF (MSBT) with a 0.14% fee, the lowest in the market
• Investor sentiment in crypto ETFs remains cautious, but institutional interest could shift the market