Spot Bitcoin ETFs See Record Monthly Outflows in February

Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced their highest monthly net outflows in February since their launch. The 12 spot Bitcoin ETFs saw over $3.5 billion in net outflows during the month, marking the largest outflows ever recorded in a single month since their inception.

Monthly Outflows Exceed Previous Inflows

This significant shift in investor sentiment came after these ETFs saw approximately $4.8 billion in inflows in January. Notably, Bitcoin ETFs started February on a positive note, with $203.54 million in net inflows during the first week, extending a five-week inflow streak. However, sentiment changed drastically in the following two weeks, with outflows exceeding $500 million each week.

Weekly Outflows Reach Record High

The negative momentum peaked in the final week of Feb. 24–Feb. 28, when these investment products saw net outflows of $2.61 billion, marking their highest weekly outflows since launch. Feb. 25 was particularly significant, with $1.14 billion in net outflows—the highest single-day outflow recorded for Bitcoin ETFs.

Investors Return to Bitcoin ETFs

On a positive note, the 12 Bitcoin ETFs shifted back to net inflows on February 28, with $94.34 million entering the funds. The majority of inflows came from ARK 21Shares’ ARKB, which saw $193.7 million, followed by Fidelity’s FBTC, which attracted $176.03 million. However, these gains were partially offset by $244.56 million in outflows from BlackRock’s IBIT.

Bitcoin’s Performance and Market Impact

The investment vehicles’ massive net outflows in February came as Bitcoin tumbled approximately 28% from its record high as of March 2. This marked Bitcoin’s largest monthly drop since June 2022, wiping out nearly $1 trillion from the crypto market. Fidelity’s FBTC led the outflows, losing over $1.4 billion.

Market Factors Contributing to Outflows

Investor confidence took a hit due to former President Donald Trump’s aggressive trade policies, raising concerns over economic instability. Additionally, persistent inflation pressured financial markets, prompting investors to move away from riskier assets. The situation worsened after hackers stole nearly $1.4 billion from Bybit—the largest crypto theft in history—and traders suffered significant losses on speculative memecoins.

Tips for Investors

When investing in Bitcoin ETFs, consider the following:

  • Monitor market trends and adjust your investment strategy accordingly.
  • Diversify your portfolio to minimize risks.
  • Stay informed about global economic events and their potential impact on the crypto market.

Expert Insights on the U.S. Strategic Crypto Reserve

“The launch of a U.S. Crypto Strategic Reserve marks a pivotal moment for digital assets, reflecting a major step in the government’s engagement with the crypto industry.”

Federico Brokate, head of U.S. business at 21Shares, emphasized that including multiple blockchain protocols highlights “the diverse utility of blockchain networks, from tokenization to global payments.” According to Brokate, this move positions the U.S. to lead the “next phase of adoption and innovation” in the crypto space.

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