Key Points
- U.S. Bitcoin ETFs experienced a significant increase in net outflows on February 24, primarily from Fidelity and BlackRock’s funds.
- Ethereum ETFs also suffered substantial outflows on the same day.
On February 24, there was a notable increase in net outflows from U.S. spot Bitcoin ETFs, with the majority originating from Fidelity and BlackRock’s funds. This occurred as the market sentiment took a turn for the worse.
Data from SoSoValue indicates that the 12 spot Bitcoin ETFs recorded $516.41 million in outflows on that day. This represents a surge of over 700% from the previous day’s $62.77 million, marking it the worst single-day outflow since January 8.
Major Outflows from ETFs
Fidelity’s FBTC suffered the most significant loss, with outflows of $246.96 million. It was closely followed by BlackRock’s IBIT, which experienced $158.59 million in redemptions. Notably, none of the ETFs recorded any inflows that day, indicating a strong wave of selling pressure.
Other ETFs that saw outflows included 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), and Grayscale’s mini Bitcoin Trust ($6.25 million).
Despite this sell-off, the total daily trading volume for these ETFs remained high at $2.9 billion. Overall, these funds have seen net inflows of $39.04 billion since their inception.
Ethereum ETFs Suffering
Ethereum ETFs also struggled on February 24, recording heavy outflows of $78.09 million. This was a significant increase from the $8.92 million outflows seen the day before.
BlackRock’s ETHA led the outflows with $48.21 million withdrawn, followed by Grayscale’s ETHE, which lost $15.45 million. Other funds that experienced redemptions included Bitwise’s ETHW ($9.71 million) and Grayscale’s mini Ethereum Trust ($4.73 million).
The timing of these outflows coincided with Bitcoin’s struggle to find direction. For most of February, Bitcoin has been stuck in a tight range between $94,000 and $98,000. Over the weekend, it took a hit following news of a $1.4 billion theft in Ethereum and related tokens from the crypto exchange Bybit.
On Monday, Bitcoin fell to $88,614, trading 18.5% below its all-time high of $108,786, which it reached on the day of Donald Trump’s inauguration. Despite MicroStrategy’s ongoing Bitcoin buying spree, the market was not lifted. The company recently announced another significant purchase—20,356 BTC—bringing its total holdings to nearly 500,000 BTC.
A month into Donald Trump’s second term, the expectations that he would boost the crypto market, similar to what happened after his victory in November, have not come to fruition. Bettors on Polymarket now give just a 10% chance that he will create a strategic Bitcoin reserve within his first 100 days. Meanwhile, the White House has softened its stance, stating it’s still evaluating whether to stockpile Bitcoin.
Currently, the market appears to be in a wait-and-see mode as investors navigate volatility, ETF outflows, and broader uncertainty around regulatory and macroeconomic trends.