US Spot Bitcoin ETFs See Highest Single-Day Outflow of Over $938M

United States Spot Bitcoin exchange-traded funds (ETFs) have experienced their largest single-day outflow, as bitcoin (BTC) trades under $90,000. This marks a significant shift in market sentiment, causing panic among investors.

According to data from CoinGlass, the 11 Bitcoin funds recorded a net outflow of $937.9 million, marking their sixth consecutive trading day of outflows.

US Spot Bitcoin ETFs, which allow investors to gain exposure to Bitcoin without directly holding the crypto assets, have been increasingly popular as institutional interest in digital assets surged. However, this massive outflow came as the crypto market saw a sharp decline, as BTC dropped by over 3.4%, with a 24-hour price of over $86,100.

Multimillion-Dollars Outflow

Following the multimillion-dollar outflow, the Fidelity Wise Origin Bitcoin Fund (FBTC) topped the day’s losses, recording a $344.7 outflow million. BlackRock’s iShares Bitcoin Trust (IBIT) followed closely behind with an outflow of $164.4 million.

The Bitwise Bitcoin ETF (BITB) saw an outflow of $88.3 million, while Grayscale’s two funds lost a total of $151.9 million, which included $66.1 million from the Grayscale Bitcoin Trust (GBTC) and $85.8 million from the Bitcoin Mini Trust ETF (BTC).

Given the market conditions, approximately $2.4 billion has been withdrawn from the 11 ETFs this month, with only four days of net inflows recorded.

BTC Leads By Market Cap

Despite the outflow, BTC continues to hold its position as the leading crypto by market capitalization, with a growing institutional base that is still bullish on its long-term potential. At press time, the digital asset was changing hands at over $88,600 and a 24-hour trading volume of $73.4 billion, which indicates strong market participation and potential for price movement.

While BTC still struggles, ETF Store President Nate Geraci noted that he was amazed at how much TradFi dislikes bitcoin and crypto. He further stated that there has been a lot of celebrating during each dip, and no matter how severe the pullbacks get, it is not going anywhere.

Analysts and industry experts, including BitMEX co-founder Arthur Hayes and Markus Thielen, head of research at 10x Research, have stated that most Bitcoin ETF investors are hedge funds looking for arbitrage opportunities rather than long-term BTC holders.

As such, on February 24, Hayes predicted that BTC price could drop to $70,000 due to the ongoing outflows from spot ETFs. He further explained that many IBIT holders are hedge funds that went long on ETFs while simultaneously shorting CME futures to generate a yield higher than what they would earn from short-term US Treasuries.