The U.S. spot Bitcoin ETFs recorded a massive surge in outflows on February 24, with net withdrawals jumping over 700% in a single day. According to SoSoValue data, the 12 Bitcoin ETFs saw a total of $516.41 million in outflows, marking the worst single-day exodus since January 8.
Fidelity and BlackRock ETFs Lead the Outflows
The biggest outflows came from Fidelity’s FBTC, which saw $246.96 million withdrawn, followed by BlackRock’s IBIT, which faced $158.59 million in redemptions.
Other ETFs that recorded significant outflows include:
- Grayscale’s GBTC – $59.5 million
- Invesco Galaxy’s BTCO – $15.02 million
- WisdomTree’s BTCW – $12.5 million
- Bitwise’s BITB – $10.26 million
- VanEck’s HODL – $7.33 million
- Grayscale’s mini Bitcoin Trust – $6.25 million
Notably, none of the Bitcoin ETFs recorded any inflows, indicating a strong selling trend.
Ethereum ETFs Also Face Heavy Selling
It wasn’t just Bitcoin ETFs that saw a sharp sell-off—Ethereum ETFs also faced heavy outflows, losing $78.09 million on February 24, a massive increase from the $8.92 million withdrawn the previous day.
The largest Ethereum ETF outflows came from:
- BlackRock’s ETHA – $48.21 million
- Grayscale’s ETHE – $15.45 million
- Bitwise’s ETHW – $9.71 million
- Grayscale’s mini Ethereum Trust – $4.73 million
Data for 21Shares’ CETH was unavailable, while four other ETH ETFs remained unchanged.
Bitcoin Struggles as Market Sentiment Worsens
The timing of these outflows coincides with Bitcoin’s recent price struggles. BTC has been trading between $94,000 and $98,000 for most of February but suffered a sharp drop to $88,614 on Monday, marking an 18.5% decline from its all-time high of $108,786.
Several key factors contributed to this downturn:
- The Bybit Hack – Over $1.4 billion in Ethereum and related tokens were stolen, raising security concerns.
- ETF Weakness – Outflows from major institutional funds suggest a shift in sentiment among big investors.
- MicroStrategy’s BTC Purchases Didn’t Help – Despite buying 20,356 BTC, bringing its holdings to nearly 500,000 BTC, Bitcoin’s price failed to recover.
Trump’s Second Term Fails to Ignite Crypto Market
Despite widespread expectations that Donald Trump’s presidency would boost the crypto market, investors remain cautious.
- Polymarket bettors give only a 10% chance that Trump will establish a strategic Bitcoin reserve within his first 100 days.
- The White House has softened its stance, stating it is still evaluating whether to stockpile Bitcoin.
What’s Next for Bitcoin and ETFs?
While ETF outflows suggest short-term bearish sentiment, Bitcoin’s long-term outlook remains uncertain as traders wait for new regulatory and macroeconomic signals. For now, Bitcoin remains under pressure, and investors are closely watching whether ETF inflows will return to stabilize the market.
