Key Points
- U.S. spot Bitcoin ETFs experienced record daily outflows as Bitcoin’s price fell below $90,000.
- Despite the outflows, these ETFs have seen a net inflow of $38.08 billion since their inception.
U.S. spot Bitcoin exchange-traded funds (ETFs) saw their highest daily outflows ever as the price of Bitcoin fell under $90,000. This drop sparked a wave of risk-aversion among investors due to increasing macroeconomic worries.
Spot Bitcoin ETFs Outflows
Data from SoSoValue reveals that the 12 spot Bitcoin (BTC) ETFs had a total net outflow of $937.78 million on February 25. This figure is the highest single-day outflow since the ETFs’ inception, surpassing the previous record of $680 million set on December 19, 2024.
The largest outflow came from Fidelity’s FBTC, with $344.65 million leaving the fund. BlackRock’s IBIT followed with $164.37 million in net redemptions. Other ETFs experiencing outflows included Bitwise’s BITB, Grayscale’s Mini Bitcoin Trust, Franklin Templeton’s EZBC, Grayscale’s GBTC, Invesco Galaxy’s BTCO, Valkyrie’s BRRR, WisdomTree’s BTCW, and VanEck’s HODL.
Despite the outflows, spot Bitcoin ETFs’ daily trading volume increased by approximately 167% from the previous day, reaching $7.74 billion. Since their inception, these ETFs have a net inflow of $38.08 billion.
Factors Behind the Sell-off
The sell-off appears to be driven by Bitcoin falling below the crucial $90,000 mark and increasing concerns about upcoming tariffs on Canadian and Mexican goods proposed by Donald Trump. If a 25% tariff on U.S. imports is implemented, it could result in higher inflation and slower economic growth, pressuring the Federal Reserve to react.
On-chain data from Santiment indicates increased selling pressure, with more Bitcoin moving onto exchanges and whale holdings in non-exchange wallets declining. This trend suggests that large investors who were previously accumulating BTC are now transferring their holdings to exchanges, which often signals potential selling pressure.
Analyst’s Perspective
Matt Mena, a crypto research strategist at 21Shares, commented on the downturn in BTC ETFs. He stated that while some investors fear Bitcoin has peaked, both on-chain and macro indicators suggest the market is still in the early-to-mid bull cycle.
Mena noted that despite the pullback, crypto is still up over 50% from last year, demonstrating its long-term resilience. With Bitcoin now down 18% from its recent highs, Mena views this correction as a “temporary reset—not the end of the cycle.” He believes it presents a strategic re-entry point for investors who hesitated to enter the market after the election.
