Bitcoin ETFs Bled $200M as BTC Tracks Tech Sell-Off

Key Insights:

• Bitcoin ETFs recorded $200 million in net outflows.
• BTC tracked IGV during the latest tech sector sell-off.
• Analyst sees sovereign funds as next capital wave.

Bitcoin ETFs extended their outflow streak this week as BTC fell in tandem with technology equities. On Tuesday, market analyst Jackson wrote on X that Bitcoin had “succeeded as an ETF,” arguing that institutional ownership reshaped its price behavior. Farside Investors data showed over $200 million left U.S. spot Bitcoin exchange-traded funds on Monday, while BTC/USD slipped under $63,000.

The broader context around Bitcoin ETFs framed the decline as structural rather than cyclical. Jackson argued that institutions became the marginal buyer during this cycle, replacing retail investors who drove prior rallies.

That ownership shift altered correlation patterns and exposed Bitcoin to portfolio rebalancing flows typically seen in equities. As gold reached new highs, capital rotated away from crypto exposure and into defensive assets, reinforcing the pressure on ETF-linked holdings.

Bitcoin Tracks Tech As ETFs Bleed

TradingView data showed BTC mirrored BlackRock’s iShares Expanded Tech-Software Sector ETF (IGV) during recent volatility. Jackson stated that every IGV sell-off triggered corresponding weakness in BTC, compressing the narrative around store-of-value positioning.

He pointed to a prior move from $126,000 to $63,000 as evidence that correlation intensified during drawdowns. That reaction mirrored broader equity flows rather than crypto-specific catalysts.

BlackRock also manages the iShares Bitcoin Trust, ticker IBIT, which became the largest U.S. spot Bitcoin fund. Jackson said IBIT changed who owns Bitcoin, concentrating exposure among allocators sensitive to quarterly risk management.

Unlike the 2021 cycle, where funds distributed near $69,000 and retail dominated momentum, the 2025 structure reflected institutional positioning at lower levels. This shift occurred because ETF wrappers simplified access for asset managers who treat Bitcoin as a tactical allocation.

Stablecoin Supply and Market Structure Signals

Jackson argued that the bearish phase lacked confirmation from stablecoin contraction. He said prior cycles filtered weak hands before longer-duration capital replaced them. In 2017, retail sellers exited near $20,000, while in 2021, fund distribution was $69,000. By 2025, ETF allocators appeared to reduce exposure to nearly $63,000, marking another transition phase.

He identified two triggers for reversal: an end to IGV-driven sell pressure and renewed stablecoin supply expansion on exchanges. That supply growth historically coincided with increased risk appetite across digital assets. Without fresh on-chain liquidity, however, ETF flows remained the dominant marginal driver. As long as correlation with tech persisted, Bitcoin traded like a high-beta equity proxy.

Institutional Exit Or Capital Rotation

Jackson framed the current retreat as purification rather than capitulation. He forecast that sovereign wealth funds, corporate treasuries, and pension capital would enter future cycles. Such allocators typically hold assets for decades and avoid frequent rebalancing into equity benchmarks. If that cohort replaces short-term ETF traders, Bitcoin may decouple from technology sector proxies.

Farside Investors’ records confirmed Monday’s ETF outflows exceeded $200 million, extending a multi-session streak. Meanwhile, gold’s advance to new highs suggested defensive positioning across global portfolios. That capital migration left Bitcoin lagging other macro hedges despite its fixed supply narrative. Institutions, rather than retail traders, dictated marginal pricing during the current phase.

Market participants now watched whether equity weakness persisted or stabilized. Should IGV selling pressure ease, Bitcoin may regain independent momentum. Traders also tracked exchange stablecoin balances for signs of renewed inflows. Until those signals materialize, ETF-driven positioning continued to shape short-term price action.

The next immediate level stood near the February low reached earlier this month. If buyers defend that zone, Bitcoin may attempt stabilization before the next macro catalyst. If not, further ETF rebalancing could extend volatility into the coming sessions.