Massive Outflows Hit Bitcoin and Ethereum ETFs, Led by Fidelity and BlackRock

The cryptocurrency market experienced significant pressure on February 24, as Bitcoin and Ethereum ETFs recorded large outflows. According to data from SoSoValue, total outflows from 12 Bitcoin ETFs reached $516.41 million, surging over 700% compared to the previous day's $62.77 million. This marked the largest single-day outflow since January 8.

Fidelity and BlackRock Lead Bitcoin ETF Outflows

The Bitcoin ETF that suffered the largest outflows was Fidelity’s FBTC, which lost $246.96 million. BlackRock’s IBIT also faced substantial redemptions, with total outflows of $158.59 million. Notably, no Bitcoin ETF recorded any inflows on that day, reflecting significant selling pressure in the market.

Here are some other Bitcoin ETFs that experienced outflows:

• Grayscale’s GBTC: $59.5 million
• Invesco Galaxy’s BTCO: $15.02 million
• WisdomTree’s BTCW: $12.5 million
• Bitwise’s BITB: $10.26 million
• VanEck’s HODL: $7.33 million
• Grayscale’s mini Bitcoin Trust: $6.25 million

Despite the wave of selling, the daily trading volume for Bitcoin ETFs remained high at $2.9 billion. Since their launch, Bitcoin ETFs have still recorded net inflows of $39.04 billion.

Ethereum ETFs Also Face Pressure

Not only Bitcoin, but Ethereum ETFs also saw significant outflows, totaling $78.09 million on February 24—a sharp increase compared to $8.92 million the previous day.

The Ethereum ETFs that recorded the largest outflows include:

• BlackRock’s ETHA: $48.21 million
• Grayscale’s ETHE: $15.45 million
• Bitwise’s ETHW: $9.71 million
• Grayscale’s mini Ethereum Trust: $4.73 million

Meanwhile, data for 21Shares’ CETH had not been updated at the time, while four other Ethereum ETFs showed no movement.

What Triggered These Large Outflows?

This surge in outflows occurred amid Bitcoin’s price stagnation, fluctuating between $94,000 and $98,000 throughout February. Pressure increased further after reports emerged that over $1.4 billion worth of Ethereum and related tokens had been stolen from the Bybit crypto exchange.

On February 26, Bitcoin dropped to $88,614, approximately 18.5% below its all-time high of $108,786, which was reached on the day of Donald Trump’s inauguration.

Even MicroStrategy’s aggressive Bitcoin purchases couldn’t prop up the market. The company recently acquired 20,356 BTC, bringing its total holdings to nearly 500,000 BTC.

Trump’s Policies and Their Impact on Crypto Markets

Since Donald Trump began his second term, expectations that his administration would boost the crypto market have yet to materialize. While his victory in November initially fueled optimism, that momentum has since faded.

According to Polymarket data, there is only a 10% chance that the Trump administration will establish a strategic Bitcoin reserve within its first 100 days. The White House has confirmed that it is still evaluating the possibility of stockpiling Bitcoin as a strategic asset.

For now, the market remains in a “wait-and-see” mode amid high volatility, significant ETF outflows, and uncertainty surrounding regulations and macroeconomic trends.

The sharp increase in outflows from Bitcoin and Ethereum ETFs on February 24 highlights continued selling pressure in the market. Fidelity and BlackRock were the primary players in this wave of redemptions, with hundreds of millions of dollars withdrawn.

While trading volumes remain high and Bitcoin ETFs have still seen positive net inflows since their inception, investors appear to be waiting for greater clarity before re-entering the crypto market.

Reference: https://crypto.news/