US Spot Bitcoin ETFs Experience Three Consecutive Days of Net Outflows

US spot Bitcoin ETFs have experienced a significant decline in investor interest, with three consecutive days of net outflows totaling nearly $500 million up to February 20. This trend has sparked concerns about changing investor sentiment in the cryptocurrency market.

Outflows by the Numbers

The three-day outflow period began with $61.4 million on February 18, followed by $71.07 million on February 19. However, the largest single-day decline occurred on February 20, with net outflows surging to $364.93 million. This marks the most significant single-day decline in the three-day period.

BlackRock’s IBIT experienced the largest single-day withdrawal, losing $112.05 million. The next biggest outflows were $98.3 million from ARK Invest’s ARKB and $89.24 million from Fidelity’s FBTC. Grayscale’s GBTC continued its outflow streak with $33.5 million in outflows, following its conversion from a trust structure.

Institutional Demand Remains Strong

Despite the outflows, institutional demand for Bitcoin ETFs seems to be growing. The recent $436.9 million investment in BlackRock’s IBIT by Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, demonstrates long-term confidence in the cryptocurrency market.

Additionally, Barclays has also invested $131 million in IBIT as of Q4 2024, according to its February 13 form 13F filing with the Securities and Exchange Commission. These investments suggest that institutional investors remain bullish on Bitcoin despite the recent outflows.

Analyst Insights

Crypto analyst Miles Deutscher noted that the decrease in inflows into Bitcoin and Ethereum ETFs can be attributed to the fact that markets have already factored in early demand from ETF approvals and the surrounding euphoria. Investors are currently waiting for the next significant catalyst to push prices higher.

Uncertainty has also increased due to the delayed introduction of the Strategic Bitcoin Reserve, which many investors had anticipated would take place soon after Donald Trump took office.

Bitcoin Price Remains Stable

Despite the outflows, Bitcoin’s price has remained relatively stable at $98,000, up 1% over the last day. Long-term demand from institutions is a crucial aspect to monitor, according to analysts, as it might help sustain Bitcoin’s momentum in the coming months.

Stay up-to-date with the latest cryptocurrency news on Global Crypto News.

Post Views: 2