 ▲ Bitcoin Spot ETF |
Signs of large-scale capital outflows led by BlackRock have been detected in the Bitcoin (BTC) spot ETF market. Coupled with technical uncertainties and warnings of weakening institutional demand, downward pressure on the market is intensifying.
According to cryptocurrency media outlet CoinGape on February 17 (local time), outflow signals have been identified from IBIT, BlackRock’s Bitcoin spot ETF product, raising concerns about increased selling pressure on Bitcoin. Investor and television personality Kevin O’Leary recently analyzed that Bitcoin’s sharp decline reflects more than a simple price correction, suggesting a fundamental shift in institutional investor behavior. In particular, the emergence of long-term structural risks such as threats from quantum computing has dampened aggressive institutional buying.
O’Leary cited technological risk management as a key reason institutions are limiting Bitcoin allocations to around 3% of their overall portfolios. He explained that the theoretical possibility of future quantum systems compromising blockchain encryption security is weighing on long-term institutional decision-making. As Bitcoin records four consecutive weeks of weekly losses, this cautious stance is undermining the market’s recovery momentum.
There are also signs of asset rotation among institutions. Harvard Management Company (HMC) reportedly reduced its holdings in BlackRock’s Bitcoin spot ETF by 21% and shifted funds into a spot Ethereum (ETH) ETF. This move is seen as an example of institutional interest diversifying from Bitcoin to other major assets such as Ethereum.
Bitcoin has fallen 28.3% over the past month and is trading around $68,206, reflecting extreme volatility. During the market crash last October, many altcoins plunged between 80% and 90% and failed to recover, prompting institutions to consolidate their portfolios around blue-chip assets such as Bitcoin and Ethereum. However, the recent slowdown in capital inflows and rising technical concerns suggest that even these major assets are not immune to downward pressure.
The cryptocurrency market is currently undergoing a transitional phase marked by stricter risk management and asset reallocation among institutional investors. The sell signals from BlackRock’s IBIT and the withdrawal of major institutions are likely to exacerbate short-term supply-demand imbalances. Without resolving technical challenges such as quantum security and achieving greater regulatory clarity, an active return of institutional investors to the market may be delayed for the time being.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*