Record $938M Outflow Hits US Spot Bitcoin ETFs Amid Market Turbulence
Fhumulani Lukoto
- 2 min read
Key Takeaways
Largest Single-Day Outflow: A record-breaking $938 million was withdrawn from US spot Bitcoin ETFs in a single day, marking the most significant outflow in their history.
Market Volatility and Economic Concerns: The outflows occurred as Bitcoin’s price fell below $90,000, driven by concerns over US economic instability, inflation, and recent trade policy developments.
Institutional Investor Behaviour: Most outflows were linked to institutional investors, particularly hedge funds unwinding arbitrage strategies amid declining Bitcoin prices.
United States Bitcoin exchange-traded funds (ETFs) experienced their most significant single-day net outflows to date, coinciding with Bitcoin’s (BTC’s) ongoing trade below the $90,000 mark.
Overview
On February 25 2025, CoinGlass data revealed that US spot Bitcoin ETFs experienced their largest-ever single-day net outflow, with investors pulling approximately $938 million from these funds. This significant withdrawal marks the sixth consecutive day of outflows, coinciding with BTC’s price dipping below the $90,000 threshold.
ETF Store President Nate Geraci expressed his continued surprise at the extent of traditional finance’s (TradFi’s) disdain for BTC and crypto. Geraci said, “Huge victory laps every downturn.” He added, “Hate to break it to you, but no matter how big drawdowns are, it’s not going away.”
Leading Funds Affected
The Fidelity Wise Origin Bitcoin Fund (FBTC) bore the brunt of the outflows, losing $344.7 million—the highest single-day outflow recorded for this ETF. BlackRock’s iShares Bitcoin Trust (IBIT) followed with $164.4 million in outflows. Other notable funds affected include the Bitwise Bitcoin ETF (BITB), with $88.3 million in outflows, and Grayscale’s Bitcoin Trust (GBTC), which saw a combined outflow of $151.9 million across its products.
Market Factors Influencing Investor Behaviour
The substantial outflows from Bitcoin ETFs are occurring amidst a broader downturn in the crypto market. BTC’s price has recently fallen below $87,000, a significant drop from it’s all-time high of $109,000 the previous month. This decline is primarily attributed to growing concerns over US economic instability, particularly inflation and trade policies. President Trump’s confirmation of tariffs on Mexico and Canada has exacerbated these worries, potentially leading to increased inflation.
Investors closely monitor economic indicators, as higher inflation could deter the Federal Reserve from reducing interest rates, impacting investments in higher-risk assets like cryptocurrencies and stocks. Analysts suggest that most Bitcoin ETF investors are hedge funds engaging in arbitrage strategies rather than long-term holders. As the yield from these strategies diminishes alongside BTC’s price, these funds are unwinding their positions, contributing to the recent outflows.
The record-setting outflows from US spot Bitcoin ETFs reflect a combination of macroeconomic concerns and strategic repositioning by institutional investors. As the cryptocurrency market navigates these challenges, stakeholders closely watch for signs of stabilisation or further volatility.
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Fhumulani Lukoto
Cryptocurrency Journalist
Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.