Bitcoin ETFs Experience Historic Outflows Amid Market Slump

Bitcoin exchange-traded funds (ETFs) in the U.S. have faced their largest-ever wave of outflows as the cryptocurrency slided below the $89,000 mark.

On February 25, the 11 Bitcoin ETFs experienced a combined outflow of $937.9 million, marking the sixth consecutive day of losses, according to data from Farside.

This trend comes amid a larger downturn in the market, with Bitcoin falling 3.4% in a single day, dipping from a peak of $92,000 to a low of $86,140.

eading the outflow was the Fidelity Wise Origin Bitcoin Fund (FBTC), which saw a record $344.7 million leave, while BlackRock’s iShares Bitcoin Trust (IBIT) followed with $164.4 million in losses.

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Other funds like Bitwise Bitcoin ETF (BITB) and Grayscale’s two Bitcoin-focused ETFs also suffered significant outflows.

With $2.4 billion leaving Bitcoin ETFs this month alone, many analysts are pointing to the shift as largely driven by hedge funds seeking quick profits through arbitrage strategies, rather than long-term investors.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.