Bitcoin ETFs Face Record Outflows Amidst Market Turmoil

BlackRock’s IBIT and other Bitcoin ETFs experienced record outflows, marking the seventh consecutive day of net redemptions. According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded a total of $754.53 million in net outflows on Feb. 26, following the $1.14 billion net redemptions seen the previous day.

BlackRock’s IBIT led the outflows, with $418.06 million exiting the fund, marking its highest net outflow day since launch. Fidelity’s FBTC followed, with $145.69 million in outflows, extending its streak to seven consecutive days of redemptions. While no Bitcoin ETFs recorded positive inflows on the day, other ETFs such as ARKB, GBTC, and BTCO also saw outflows.

Daily trading volume for spot Bitcoin ETFs stood at $5.79 billion at press time. Despite the recent outflows, these ETFs have still accumulated a net inflow of $37.12 billion overall since their launch. In February alone, around $3.1 billion has exited the 12 ETFs, with only four days of net inflows recorded.

ETF Store President Nate Geraci expressed his frustration over traditional finance’s stance on Bitcoin and crypto, stating that he was “still amazed at how much TradFi hates Bitcoin and crypto.” He noted that some in the sector take “huge victory laps at every downturn” but emphasized that despite significant price drops, Bitcoin “is not going away.”

Meanwhile, Bloomberg senior ETF analyst Eric Balchunas pointed out that Bitcoin ETFs have been under pressure, recording over $1 billion in outflows in a single day and experiencing massive withdrawals throughout the week. However, he highlighted a silver lining, noting that these outflows represent “less than 2% of assets” and that despite the downturn, “over 98% of the money [is] HODLing.” Balchunas reiterated his long-term perspective on Bitcoin’s market cycles, stating, “Like I said, it’s gonna be two steps [forward], one step back. Get used to it.”