Key Points
- U.S. spot Bitcoin ETFs have seen three consecutive days of net outflows, totaling nearly $500 million.
- Despite the outflows, institutional demand appears to be growing, with significant investments in BlackRock’s IBIT.
U.S. spot Bitcoin ETFs experienced a significant decline over three days leading up to Feb. 20, with nearly $500 million in net outflows.
The outflow began with $61.4 million on Feb. 18, increased to $71.07 million on Feb. 19, and peaked at $364.93 million on Feb. 20. This was the largest single-day decline in the three-day period.
ETF Outflows and Institutional Investments
BlackRock’s IBIT saw the highest single-day withdrawal of $112.05 million. ARK Invest’s ARKB and Fidelity’s FBTC followed with outflows of $98.3 million and $89.24 million respectively. Grayscale’s GBTC continued its outflow streak with $33.5 million after its conversion from a trust structure. However, Bitwise’s BITB and VanEck’s HODL saw inflows of $24.1 million and $4.18 million respectively.
Despite the notable outflows, institutional demand seems to be on the rise. This is evident from the recent $436.9 million investment in BlackRock’s IBIT by Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company. Barclays has also invested $131 million in IBIT as of Q4 2024, according to its Feb.13 form 13F filing with the Securities and Exchange Commission.
Market Trends and Uncertainty
Crypto analyst Miles Deutscher observed that the initial demand and excitement surrounding ETF approvals and Trump have led to decreased inflows into Bitcoin and Ethereum ETFs. Investors are now waiting for the next significant catalyst to push prices higher.
The delayed introduction of the Strategic Bitcoin Reserve has also added to market uncertainty. Many investors expected it to be introduced soon after Donald Trump took office, potentially triggering new institutional inflows.
Despite the outflows, the price of Bitcoin has remained relatively stable at $98,000, an increase of 1% over the last day. Analysts highlight that long-term demand from institutions is a key factor to watch, as it could help maintain Bitcoin’s momentum in the future.
