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Date: 2025-02-26 07:09:45
U.S.-based spot Bitcoin exchange-traded funds (ETFs) registered their highest daily withdrawals yesterday as Bitcoin's value slipped below $90,000, sparking a risk-averse mindset among investors due to increasing macroeconomic worries.
According to SoSoValue's data, the 12 available spot Bitcoin (BTC) ETFs experienced a combined net outflow of $937.78 million on Feb. 25—their highest single-day outflow since inception—far exceeding the previous record of $680 million in net outflows on Dec. 19, 2024.
The majority of the withdrawals originated from Fidelity’s FBTC, with $344.65 million leaving the fund, marking its highest daily outflow since inception. BlackRock’s IBIT reported $164.37 million in net redemptions.
Data for ARK 21Shares’ ARKB was unavailable during the reporting period, but other ETFs that experienced outflows included:
Despite the mass sell-off, daily trading volume for spot Bitcoin ETFs nearly doubled from the previous day, hitting $7.74 billion. Overall, these ETFs have amassed a net inflow of $38.08 billion since their introduction.
The ongoing sell-off appears to be driven by Bitcoin falling below the crucial $90,000 threshold, along with mounting concerns over Donald Trump's proposed tariffs on Canadian and Mexican goods, which are set to take effect in March.
The implementation of a 25% tariff on U.S. imports may result in higher inflation and slower economic growth, potentially forcing the Federal Reserve to intervene. The Fed has maintained that it will only lower interest rates when inflation nears its 2% target, but recent data indicates inflation is moving in the opposite direction.
Santiment's on-chain data reveals that more Bitcoin is being transferred to exchanges, while whale holdings in non-exchange wallets are decreasing. This shift suggests that large investors who were previously accumulating BTC are now transferring their assets to exchanges, often a sign of potential selling pressure.
Read More: "Bitcoin May Dip Further, Yet Bullish Signals Emerging for Future Surge"
A significant metric, BTC supply held by funds, is also decreasing, indicating that institutional investors are reducing their Bitcoin holdings. This correlates with the negative net flows in spot Bitcoin ETFs, which have seen outflows on 12 of the last 16 trading days, amounting to approximately $2.41 billion since early February.
Matt Mena, a crypto research strategist at 21Shares, commented on the downturn in BTC ETFs, stating that while some investors worry Bitcoin has peaked, both on-chain and macro indicators indicate the market is still in the early-to-mid bull cycle.
Mena pointed out that despite this setback, crypto is still up over 50% compared to last year, demonstrating its long-term resilience.
With Bitcoin down 18% from recent highs, Mena views this correction as a "temporary reset—not the end of the cycle." He considers it a strategic re-entry opportunity for investors who hesitated to enter the market after the election.
“Historically, crypto has penalized those who delay at key dips. The window for accumulation may not remain open for long,” Mena concluded.