🌎 Bitcoin ETFs Record Highest Single-Day Outflow

Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced a significant increase in outflows on February 25, with a total of $937.78 million in net outflows recorded across 12 funds. This marks the highest single-day outflow since the launch of these funds, surpassing the previous record of $680 million set on December 19, 2024.

Factors Contributing to the Sell-Off

The majority of the outflows came from Fidelity’s FBTC, which saw $344.65 million exit the fund, followed by BlackRock’s IBIT with $164.37 million in net redemptions. Other ETFs that recorded outflows include:

Bitwise’s BITB: $88.3 million
Grayscale’s Mini Bitcoin Trust: $85.76 million
Franklin Templeton’s EZBC: $74.07 million
Grayscale’s GBTC: $66.14 million
Invesco Galaxy’s BTCO: $62.01 million
Valkyrie’s BRRR: $25.19 million
WisdomTree’s BTCW: $17.3 million
VanEck’s HODL: $9.97 million

Market Factors Driving the Sell-Off

The ongoing sell-off appears to be driven by Bitcoin dropping below the critical $90,000 level, alongside growing concerns over Donald Trump’s proposed tariffs on Canadian and Mexican goods set to take effect in March. If a 25% tariff on U.S. imports is enforced, it could lead to higher inflation and slower economic growth, putting pressure on the Federal Reserve to respond.

On-Chain Data Signals Increased Selling Pressure

On-chain data from Santiment shows that more Bitcoin is moving onto exchanges, while whale holdings in non-exchange wallets are declining. This shift suggests that large investors who were previously accumulating BTC are now transferring their holdings to exchanges, which often signals potential selling pressure.

A key metric, BTC supply held by funds, is also dropping, indicating that institutional investors are reducing their Bitcoin holdings.

Analyst Insights: Is This Just a Temporary Dip?

Commenting on the downturn in BTC ETFs, Matt Mena, a crypto research strategist at 21Shares, noted that while some investors fear Bitcoin has peaked, both on-chain and macro indicators suggest the market is still in the early-to-mid bull cycle.