Key Points
- Spot Bitcoin ETFs in the U.S. recorded a net outflow of $275.83 million on Feb. 27, marking eight consecutive days of outflows.
- Nine Ethereum ETFs also experienced a net outflow of $71.08 million on the same day, continuing a six-day negative trend.
Bitcoin and Ethereum exchange-traded funds (ETFs) in the U.S. experienced a significant outflow on February 27. This trend continued as Bitcoin’s price fell below $80k, causing a risk-averse sentiment in the broader crypto market.
Data from SoSoValue
Data from SoSoValue reveal that the 12 Bitcoin ETFs had a net outflow of $275.83 million on that day. This extended their negative streak to eight days, during which more than $3.2 billion left the funds.
BlackRock’s IBIT saw its highest outflow day on Feb. 26, with net redemptions amounting to $418.06 million. This occurred just a day after the 12 ETFs collectively recorded their highest single-day net outflows, with investors withdrawing $1.14 billion.
Outflows from ETFs
On Feb. 27, most of the outflows came from BlackRock’s IBIT, which lost $189.02 million. This was followed by WisdomTree’s BTCW, which experienced $53.78 million in outflows.
Contrary to this trend, Bitwise’s BITB saw $17.65 million in inflows, making it the only ETF to record inflows over the past three days. Other ETFs that saw negative flows include Valkyrie’s BRRR, VanEck’s HODL, Grayscale’s GBTC, Fidelity’s FBTC, Franklin Templeton’s EZBC, and Grayscale’s Mini Bitcoin Trust.
Spot Bitcoin ETFs had a daily trading volume of $3.01 billion at the time of reporting. Since their launch, these ETFs have recorded a net inflow of $36.58 billion in total.
Ethereum ETFs
Ethereum ETFs also didn’t fare well, with nine of them recording a net outflow of $71.08 million on Feb. 27. This marked the sixth consecutive day of negative momentum.
BlackRock’s ETHA recorded $26.06 million in outflows, followed by Fidelity’s FETH and Grayscale’s ETHE, with $25.45 million and $19.57 million respectively.
Outflows from both Bitcoin and Ethereum ETFs coincided with Bitcoin (BTC) falling below $80,000 for the first time in over three months. This happened as the wider crypto market faced a sell-off amid increasing global market volatility.
Bitcoin’s price dropped to as low as $79,561 during early Asian trading. This was a significant drop from its all-time high of over $109,000 recorded just the previous month.
Bitcoin had seen a significant rally following Donald Trump’s election win in November. His pro-crypto stance, including promises to ease regulations and make the U.S. a global crypto hub, boosted market optimism.
However, recent policies such as imposing tariffs on trade partners have raised fears of a potential global trade war. His plans to cut taxes and tighten immigration rules have also sparked inflation concerns. This has led to speculation that the Federal Reserve might maintain high interest rates for a longer period. Meanwhile, economic data suggests that the U.S. economy is slowing down, adding to market uncertainty.
