Bitcoin ETFs Face Record Outflows Amid Prolonged Sell-Off

BlackRock’s iShares Bitcoin Trust, the largest Bitcoin exchange-traded fund (ETF), experienced a record single-day outflow of $418 million on Feb. 26, as the sector grappled with a prolonged sell-off during the last seven trading days. This significant withdrawal marked the fund’s highest single-day outflow, surpassing its previous record of $332 million set in January.

The fund, which manages approximately $48 billion in assets, played a significant role in the day’s total sector-wide outflows of $756 million. Other notable Bitcoin ETFs also faced selling pressure, with Fidelity’s Wise Origin Bitcoin Trust (FBTC) recording $145.69 million in outflows, Ark 21Shares Bitcoin ETF (ARKB) registering $60.46 million, and Grayscale’s Mini Bitcoin Fund seeing $55.97 million leave its holdings.

This wave of exits followed an even larger outflow of $937.7 million on Feb. 25, extending a seven-day sell-off streak. Over the past week, nearly $3 billion has left Bitcoin ETFs, underlining the growing investor caution amid market uncertainty. Other funds also faced sell-offs, albeit at lower levels, with Grayscale’s GBTC shedding $22.66 million, Invesco Galaxy’s BTCO registering $16.83 million in withdrawals, and Bitwise’s ETF losing $13.65 million.

The Bitcoin ETF sector has been grappling with a prolonged sell-off, with investors withdrawing funds amid heightened market caution. The recent outflows highlight the growing concern among investors regarding the cryptocurrency market’s volatility and regulatory uncertainty. As the sector continues to evolve, investors will likely remain vigilant in their assessments of risk and opportunity.