Bitcoin ETFs See $937M Exodus as Macroeconomic Worries Trigger Investor Retreat
Investor Caution Drives Record $937 Million Outflow from US Bitcoin ETFs Amid Market Turbulence, Total Weekly Losses Near $1.5 Billion.
Key Takeaway:
- US spot Bitcoin ETFs suffered $937 million in net outflows, signaling investor caution.
- Market downturn attributed to heightened risk aversion following tariff announcement and persistent inflation concerns.
- This latest Bitcoin ETFs outflow pushes total losses for the week to nearly $1.5 billion.
On February 25, US spot Bitcoin ETFs experienced $937 million in net outflows. This massive withdrawal pushed weekly losses to nearly $1.5 billion. The decline happened as investors moved away from riskier assets due to rising economic concerns.
Inflation worries and President Donald Trump's tariff threats drove the sell-off.
Fidelity’s FBTC Bitcoin ETF Leads with $344.7 Million in Outflows
Bitcoin ETFs are experiencing another wave of heavy withdrawals, with Fidelity’s FBTC leading the exodus.
According to Farside Investor data, the fund recorded $344.7 million in outflows, marking the highest among spot Bitcoin ETFs. BlackRock’s IBIT followed closely behind, seeing nearly $164.4 million in withdrawals.
The sell-off wasn’t limited to these two funds. Bitwise’s BITB and Grayscale’s GBTC and BTC funds collectively lost $240.2 million. Franklin Templeton’s EZBC saw $74 million in outflows, while Invesco’s BTCO declined by $62 million.
Smaller players like Valkyrie, WisdomTree, and VanEck weren’t spared either, reporting net outflows of $25.2 million, $17.3 million, and $10 million, respectively.
This latest wave of redemptions has shattered previous records. The last major sell-off occurred on December 19, when spot Bitcoin ETFs saw $672 million in outflows after Bitcoin dropped below $97,000.
Yet, just weeks ago, on January 6, investor sentiment was entirely different.
Nearly $1 billion flowed into US Bitcoin ETFs, with Fidelity’s Wise Origin Bitcoin Fund attracting $370.2 million. BlackRock’s fund followed with $209 million, while ARK 21Shares saw inflows of $153 million.
In total, Bitcoin ETFs gained $1.9 billion that week, signaling a strong recovery from December’s downturn.
Now, the outflows are back in full swing. On February 24, over $500 million was pulled from Bitcoin ETFs, with Fidelity’s FBTC and BlackRock’s IBIT experiencing the sharpest declines at $247 million and $158.6 million, respectively.
The latest outflows on February 25 have brought this week's total loss to nearly $1.5 billion.
Macroeconomic concerns are driving the retreat. Investors are reacting to renewed inflation fears following President Trump’s announcement of a 25% tariff on Mexican and Canadian goods and a 10% duty on Canadian energy, all set to kick off on March 4.
The policy shift has raised concerns about supply chain costs, inflationary pressures, and broader market instability, leading investors to offload riskier assets like Bitcoin ETFs.
With uncertainty growing, investors are treading cautiously. Bitcoin ETFs, which once benefited from strong institutional interest, are now seeing the impact of shifting economic policies.
Whether this trend continues depends on how markets absorb the latest tariff measures and their long-term effects on inflation.
Crypto Market Declines Amidst President Trump’s Tarrif’s Announcement
The cryptocurrency market has declined sharply, mirroring the Bitcoin ETF sector's downturn. On February 25, Bitcoin prices fell to $86,000—their lowest point since November. This rapid devaluation triggered cascading liquidations that eliminated over $1.23 billion in long positions within a single 24-hour period, according to Coinglass.
This steep decline is also linked to President Donald Trump’s renewed tariff threats against Mexico and Canada.
The liquidation wave impacted 286,534 and 367,789 traders, with long-position holders taking the heaviest losses.
Estimates suggest long liquidations ranged from $144 million to $1.4 billion. As investors rushed to de-risk amid worsening market sentiment, Bitcoin, Ethereum, and XRP were among the most affected assets.
This event follows an even larger liquidation on February 3, 2025, when over $2.2 billion in leveraged positions were wiped out.
During that selloff, approximately 729,073 traders faced losses, with Ethereum traders alone losing over $600 million, while Bitcoin traders saw $409 million in liquidations.
Bitcoin trades at $88,398 at press time, down 7.62% over the past week. The total crypto market trading volume has declined by 6.35% in the past 24 hours, signaling reduced trading activity as investors remain cautious.
Market sentiment continues to worsen. The Crypto Fear and Greed Index, a key measure of investor confidence, has dropped from 25 to 21, placing it firmly in the “extreme fear” zone.
This growing fear could lead to further Bitcoin price declines, triggering more Bitcoin ETF outflows as investors exit risk-heavy positions.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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