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crypto.news 2025-03-03 06:39:37

US spot Bitcoin ETFs recorded over $3.5b in net outflows in February

Spot Bitcoin exchange-traded funds in the United States recorded their highest monthly net outflows in February since their launch. According to data from SoSoValue, the 12 spot Bitcoin ETFs experienced over $3.5 billion in net outflows during the month—the largest outflows ever recorded in a single month since their inception. 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. 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. 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. 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. 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. You might also like: Crypto market gains $300B amid Trump’s crypto strategic reserve announcement Despite Bitcoin’s bearish performance throughout February, marking its worst monthly decline since June 2022 with a 17.2% drop, the trend reversed yesterday after Trump announced the creation of a U.S. Strategic Crypto Reserve, which will include a basket of cryptocurrencies, including Bitcoin and Ethereum. As of press time, Bitcoin ( BTC ) had surged 8.1% in the past 24 hours, trading at $92,980, after dipping below $80,000 on Friday—a three-month low. Ethereum ( ETH ), which has been among the hardest-hit cryptocurrencies this year, gained 9.5%. Commenting on the potential impact of the reserve, Federico Brokate, head of U.S. business at 21Shares, told crypto.news: “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.” He also 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. Read more: Coinbase CEO: A Bitcoin-only strategic reserve is the best choice for the U.S.

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