U.S. spot Bitcoin ETFs have recorded three consecutive days of substantial net outflows, totaling nearly $500 million in losses as of February 20.
The downturn began on February 18 with $61.4 million in outflows, escalating to $71.07 million on February 19. On February 20, the net outflows surged dramatically to $364.93 million, marking the largest single-day decline during this period.
Among the affected funds, BlackRock’s IBIT saw the most significant single-day withdrawal, amounting to $112.05 million. Following closely were ARK Invest’s ARKB, with outflows of $98.3 million, and Fidelity’s FBTC, which experienced $89.24 million in withdrawals. Grayscale’s GBTC also continued its decline with $33.5 million in outflows after its transition from a trust structure. In contrast, Bitwise’s BITB gained inflows of $24.1 million, while VanEck’s HODL reported a modest increase of $4.18 million.
The recent outflows from Bitcoin ETFs have raised concerns regarding shifts in investor sentiment. Nonetheless, institutional demand appears to be on the rise, highlighted by a $436.9 million investment in BlackRock’s IBIT from Abu Dhabi’s Mubadala Investment Company, reflecting long-term confidence in the market.
Additionally, Barclays disclosed a $131 million investment in IBIT as part of its recent filing with the Securities and Exchange Commission.
Market analyst insights suggest that initial enthusiasm surrounding ETF approvals has diminished, leading to reduced inflows into Bitcoin and Ethereum ETFs. Investors are currently awaiting a fresh catalyst to drive prices upward, as much of the previous purchasing momentum has already occurred.
Investor uncertainty has amplified due to the postponed launch of the Strategic Bitcoin Reserve, which many anticipated would coincide with Donald Trump’s inauguration and potentially trigger new institutional inflows.
Despite the outflows, Bitcoin’s price has exhibited relative stability at $98,000, reflecting a 1% increase over the past day. Analysts emphasize that maintaining long-term institutional demand is critical for sustaining Bitcoin’s growth trajectory in the forthcoming months.
