Bitcoin ETFs Bleed $3.5B in February as Crypto Market Panics
1min read Bitcoin (BTC) concluded February with a bearish trend, dropping over 17% during the month. This decline was accompanied by a significant outflow of $3.5 billion from U.S. Bitcoin ETFs, marking the largest monthly withdrawal since their launch. The escalation of macro uncertainties and the Trump trade war contributed to the crypto market's panic over the past week. Investors are now wondering if March will bring a rebound or if the market will continue its correction.
During February 2025, spot Bitcoin ETFs recorded net outflows of $3.546 billion, or 40,000 BTC, from the market. This was the first month where every BTC ETF reported negative inflows, coinciding with an 18% drop in Bitcoin's price from $102,400 to $84,300. Top funds like BlackRock's iShares Bitcoin Trust (IBIT) saw its first-ever monthly outflows, shedding off 9,470 BTC worth a $721 million outflow. Similarly, the Fidelity Bitcoin ETF (FBTC) experienced a $1.202 billion outflow, while Grayscale's two Bitcoin funds – GBTC and BTC – clocked a cumulative outflow of $585 million.
After eight consecutive days of outflows, Bitcoin ETFs finally recorded net inflows on Friday. According to data from Farside Investors, yesterday's inflows stood at a total of $94.9 million amid the broader crypto market recovery. While BlackRock's IBIT continued with net outflows of over $243 million, Ark Invest's ARKB and Fidelity's FBTC made up for it with $193.70 million and $176.03 million worth of inflows respectively. It seems that the crypto market is finally taking a sigh of relief after key corrections in February.
February 2025 proved to be the toughest on record for the crypto market. Bitcoin price crashed more than 17.39% all the way to $82,000, making it the worst February performance for BTC over the past decade. However, altcoins like Ethereum (ETH) faced even steeper falls, correcting 31.95% and making it their worst February since inception. 