- Bitcoin ETFs saw a record $937.9M outflow on Feb. 25, marking six days of withdrawals.
- Fidelity’s FBTC led outflows with $344.7M, followed by BlackRock’s IBIT at $164.4M.
- Bitcoin dropped 3.4% to $86,140 as ETF redemptions and market fears pressured prices.
The U.S. spot Bitcoin exchange-traded funds (ETFs) recorded the largest daily negative withdrawal in their history, reflecting a crucial change in market perception. The combined withdrawals from all 11 Bitcoin ETFs reached $937.7 million on February 25, 2025, as CoinGlass data showed a six-consecutive-day decline. The decline in ETF performance occurred Bitcoin experienced price volatility by trading below $90,000.
Fidelity Wise Origin Bitcoin Fund (FBTC) suffered the biggest withdrawal, $344.7 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT), which lost $164.4 million. The Bitcoin ETF products from Bitwise (BITB) and Grayscale’s Bitcoin Trust (GBTC) also experienced substantial outflows. Although the total $2.4 billion withdrawal from funds during February marked a major depletion, only a few days of net inflows were recorded.
Source: CoinGlass
Institutional Impact and Market Reactions
The substantial outflows from Bitcoin ETFs correlate with broader economic uncertainties focused on macroeconomic elements. The tariff threats made by President Trump have revived inflation fears while simultaneously sparking economic instability due to its policies. The market sell-off caused by these concerns has forced Bitcoin prices to decrease. Bitcoin price decreased by 3.4% during the last day until it reached a new 24-hour low of $86,140, intensifying instability.
Analysts stated that most of the ETF outflows are driven by hedge funds, which use Bitcoin ETFs for carrying trades. Further, they buy the spot ETFs while simultaneously shorting Chicago Mercantile Exchange (CME) Bitcoin futures. This strategy has become less appealing as the basis (the difference between spot and futures prices) has dropped significantly. As the yield from these trades diminishes, investors pull out funds from the ETFs, contributing to the overall market downtrend.
Related: The Role of the SEC in Maintaining Trust & Stability in ETF Markets
Bitcoin Price Faces Key Support Levels
ETF outflows directly influence Bitcoin price movements through evident downward pressure that prevents the cryptocurrency from maintaining stability near important support points. At press time, Bitcoin is probing the 200-day exponential moving average of $85,696. If Bitcoin’s price falls below its support level of $85,696, it may continue falling until it reaches $67,797 or $70,000.
Current technical indicators suggest that prices will continue moving downwards. The RSI (Relative Strength Index) measures at 30.90 which shows Bitcoin is oversold yet lacks a defined signal to reverse the trend.
Source: TradingView
The Moving Average Convergence Divergence indicator produced a bearish crossover which strengthens the negative market prediction. The persisting market uncertainties increase the likelihood of Bitcoin facing downward price pressure especially if its 200 EMA support level fails to sustain.
The decreased interest in Bitcoin ETFs stems from changes observed in the carry trade market. The CME Bitcoin futures premium reduction eliminated most of the profitability for the spot ETF and futures trade strategy. Bitcoin futures have lost their popularity as carry trade instruments since they yield less than U.S. 10-year treasury notes.
