Bitcoin ETFs Face $105M Outflows Amid Institutional Moves
By John Nada·Feb 18, 2026·4 min read
Bitcoin ETFs experienced significant outflows of $105 million, reflecting changing institutional interest and market dynamics that could impact future trading.
US spot Bitcoin exchange-traded funds (ETFs) posted $104.9 million in net outflows on Tuesday in the first trading session this week. Total trading volume in spot Bitcoin (BTC) ETFs fell to just over $3 billion, down nearly 80% from a record $14.7 billion observed on February 5, according to SoSoValue data. This downturn reflects a continued slowdown in trading activity, raising questions about investor sentiment and market stability.
The substantial outflows coincided with the release of institutional Bitcoin ETF holdings for the fourth quarter of 2025. Notably, Jane Street emerged as the second-largest buyer of BlackRock’s iShares Bitcoin ETF (IBIT), acquiring $276 million worth in this recent reporting period. This institutional interest, while significant, contrasts sharply with the outflows, indicating a complex and perhaps contradictory market environment.
In addition to Jane Street, a new player, a little-known Hong Kong-based firm named Laurore, made headlines by purchasing $436.2 million of IBIT in a single SEC-reported transaction. Some analysts interpret Laurore's entry as a potential indicator of Chinese institutional capital flowing into Bitcoin. However, Laurore's lack of public visibility and information has raised eyebrows within the financial community. Jeff Park, an adviser at Bitwise Investments, pointed out that Laurore’s position could signal capital flight from China, although the rationale behind choosing an ETF over direct Bitcoin purchases remains unclear.
The presence of Laurore in the Bitcoin ETF market highlights the ongoing trend of institutional players exploring Bitcoin as a viable asset class. Park further commented on the firm's anonymity, noting that the only available information links it to a name that is the Chinese equivalent of “John Smith.” This anonymity raises questions about the motivations and strategies of such firms, particularly in a regulatory environment that is continually evolving.
In contrast to new buyers like Laurore and Jane Street, some firms drastically reduced their Bitcoin ETF exposure during the same quarter. Brevan Howard, a prominent investment firm, cut its IBIT holdings by a staggering 85%, dropping from 37 million shares valued at $2.4 billion in Q3 to just 5.5 million shares worth approximately $273.5 million in Q4. This significant reduction could indicate a strategic shift in Brevan Howard's approach to Bitcoin, possibly influenced by market conditions or internal investment strategies.
Similarly, Goldman Sachs trimmed its IBIT holdings by about 40%, leaving around $1 billion in assets. These contrasting actions from major financial institutions underscore a complex landscape for Bitcoin ETFs. While some institutions like Weiss Asset Management and Abu Dhabi's Mubadala Investment increased their IBIT positions, the significant reductions by major players such as Brevan Howard and Goldman Sachs illustrate shifting strategies within the market, highlighting a cautious approach among traditional financial players.
Weiss Asset Management reportedly added about 2.8 million shares, valued at $107.5 million, indicating a continued belief in the potential of Bitcoin as a strategic investment. Meanwhile, 59 North Capital increased its position by 2.6 million shares, amounting to $99.8 million. Notably, Mubadala Investment, a state-owned firm from Abu Dhabi, also boosted its IBIT holdings by 45%, rising from 8.7 million shares in Q3 to 12.7 million in Q4, valued at $630.7 million. This increase reflects a growing interest in Bitcoin among sovereign wealth funds, which may be indicative of a broader acceptance of cryptocurrency within institutional portfolios.
As market participants digest these developments, it becomes evident that the trajectory of Bitcoin ETFs will largely depend on broader economic factors and regulatory responses. The substantial outflows and changing institutional strategies reflect a critical moment for Bitcoin as it navigates a turbulent market environment. The divergence in institutional behavior, with some increasing their positions while others reduce their exposure, raises questions about the future dynamics of the Bitcoin market.
The decline in trading volumes and the outflows from Bitcoin ETFs signify a potential shift in investor sentiment, particularly among institutional investors who are often viewed as bellwethers for market trends. As these large players reassess their strategies, it is crucial to consider how external economic conditions, regulatory changes, and market volatility may influence their decisions moving forward. With institutional interest still present, albeit with caution, the future of Bitcoin ETFs remains uncertain yet pivotal for the broader financial landscape. The decisions made by these institutions could set the tone for the future of Bitcoin as an investment vehicle, impacting both retail and institutional investors alike.