Bitcoin Spot ETFs Face Second Consecutive Week of Heavy Outflows, Raising Investor Concerns
US spot Bitcoin exchange-traded funds (ETFs) have recorded over $500 million in net outflows for the second consecutive week, signaling a shift in investor sentiment.
According to data from SoSoValue, the 12 spot Bitcoin ETFs collectively experienced $559.41 million in outflows over the past week. This follows the previous week’s negative trend, when net redemptions reached $585.65 million.
The week beginning February 18 started with $60.63 million in outflows, reversing the positive inflows seen at the end of the prior week. Over the next two days, outflows accelerated, with $71.07 million exiting on February 19 and a staggering $364.93 million withdrawn on February 20—the highest single-day outflow recorded in February so far. The trend continued into February 21, with investors pulling out an additional $62.77 million.
A significant portion of the outflows came from Grayscale’s GBTC, which lost $60.08 million as it continued to shed assets following its conversion from a trust to an ETF structure. Bitwise’s BITB and Fidelity’s FBTC also saw outflows of $16.58 million and $12.47 million, respectively. In contrast, BlackRock’s IBIT bucked the trend with a net inflow of $21.64 million, while VanEck’s HODL recorded a modest gain of $4.71 million.
For the week, the total trading volume of Bitcoin ETFs reached $10.72 billion.
February Marks Worst Month for Bitcoin ETF Withdrawals
Since February 6, spot Bitcoin ETFs have collectively recorded $1.1 billion in net outflows, making this the worst month for withdrawals since their inception in early 2024. Despite the overall negative trend, there were a few days of net inflows, including February 4, 5, 7, and 14.
These outflows have raised concerns about shifting investor sentiment toward Bitcoin ETFs. Markus Thielen, Head of Research at 10x Research, noted that many investors in spot Bitcoin ETFs are using them primarily for arbitrage rather than long-term holdings. According to Thielen, only about 44% of ETF inflows are tied to long-term investment strategies, suggesting that the real demand for Bitcoin as a portfolio asset may be lower than commonly perceived.
Investors Shift Toward Gold and Cash Amid Economic Uncertainty
Kadan Stadelmann, CTO of Komodo Platform, pointed out that while Bitcoin ETFs are seeing capital outflows, Gold ETFs are experiencing inflows. This shift may indicate that investors are bracing for economic uncertainty.
Further supporting this cautious sentiment, Berkshire Hathaway recently disclosed that it is holding a record-high $334.2 billion in cash. Stadelmann interprets this as a sign that Warren Buffett’s firm is waiting for a market downturn to acquire assets at lower prices.
Adding to market jitters, former U.S. President Donald Trump recently stated that if re-elected, he would impose reciprocal tariffs on nearly every country. This has sparked concerns about inflation and potential trade disruptions, worries that were also reflected in the latest Federal Reserve meeting minutes.
Bitcoin, often viewed as a leading indicator of market sentiment, has also begun trending downward. Stadelmann warns that this could signal a broader market selloff, particularly following the stock market’s decline last Friday.
“These signals are prompting Bitcoin ETF investors to shift from ETFs into cash,” he concluded.
As market uncertainty looms, investors are watching closely to see whether Bitcoin ETFs can regain momentum or if further outflows will continue in the weeks ahead.
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