Fast Facts
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The U.S. spot Bitcoin ETF market experienced a record outflow of nearly $938 million amid Bitcoin’s price dip below $87,000, marking the largest single-day exit in ETF history.
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Fidelity’s FBTC suffered the biggest outflow at $344.7 million, with BlackRock’s IBIT and Bitwise’s BITB following with withdrawals of $164.4 million and $88.3 million, respectively.
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February 2024 has been notably negative for Bitcoin ETFs, with over $3 billion in outflows, making it the worst month since their inception in early 2025.
- A lack of demand from institutional investors has been observed, driven by macroeconomic factors leading to decreased bullish sentiment towards Bitcoin and associated investment products.
U.S. Spot Bitcoin ETFs Face Record Outflow of $938M Amid BTC Struggles
The United States spot Bitcoin exchange-traded fund (ETF) market has hit a concerning milestone. On February 25, it recorded its largest single-day outflow, totaling nearly $938 million. This comes as bitcoin (BTC) dipped below $87,000, marking its lowest price point since mid-November.
According to data from Farside Investors, nearly all U.S. spot Bitcoin ETFs experienced outflows on that day. Only Ark Invest’s ARKB managed to buck the trend, but it did not see any new inflows either.
Fidelity’s FBTC led the charge with the largest outflow, losing $344.7 million. This figure marks its highest daily outflow since its launch more than a year ago. Following closely behind, BlackRock’s IBIT faced withdrawals of $164.4 million, while Bitwise’s BITB saw outflows of $88.3 million.
Interestingly, BlackRock’s ETF previously experienced a major outflow of $332.6 million on January 2, demonstrating a pattern of declining interest in BTC investments. Other ETFs, such as Franklin Templeton’s EZBC and Grayscale’s GBTC, also reported significant outflows of $66.1 million and $62 million, respectively.
Meanwhile, VanEck’s Bitcoin ETF, HODL, recorded the smallest outflow of only $10 million. Despite this setback, the overall trend suggests dwindling demand for BTC among institutional investors.
February 2024 has proved particularly challenging for Bitcoin ETFs. With over $3 billion exiting these funds, it is on track to be the worst month on record since their debut in early 2025. Reports indicate only two days of positive inflows throughout the month.
This drop in investment reflects broader market conditions and changing macroeconomic factors. Investors seem less enthusiastic about BTC and its accompanying products, leading to a cautious approach in moving funds into the cryptocurrency sector.
While current trends may dishearten some investors, they also highlight the evolving nature of cryptocurrency investments. The challenges faced by Bitcoin ETFs could ultimately lead to innovations in asset management and investment strategies, paving the way for a more robust market environment in the future.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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