Massive Capital Outflow for Bitcoin and Ethereum ETFs in the U.S. as Market Sentiment Turns Cautious

Massive Capital Outflow for Bitcoin and Ethereum ETFs in the U.S. as Market Sentiment Turns Cautious

Massive Capital Outflow for Bitcoin and Ethereum ETFs in the U.S. as Market Sentiment Turns Cautious

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**Continuous Outflows from Bitcoin and Ethereum ETFs**
**Manageable Scale of Outflows, Market Remains Resilient**
**Cryptocurrency Prices Decline**
**Long-term Bullish Sentiment Unfazed**

According to a report by The Block, on February 25, 2025, the U.S. spot Bitcoin Exchange-Traded Fund (ETF) recorded a net outflow of over $516.4 million on Monday (February 24), marking the fifth-largest single-day outflow since its launch in January 2024. This outflow was led by Fidelity’s FBTC, which saw a net outflow of $247 million, followed by BlackRock’s IBIT with $158.6 million, and Grayscale’s GBTC with $59.5 million. The total net outflow for Bitcoin ETFs over the past five days has reached $1.07 billion, indicating that the market is experiencing its longest redemption period since launch.



Meanwhile, the U.S. spot Ethereum ETF was not spared, with a net outflow of $78 million on Monday, primarily driven by BlackRock’s ETHA, which has seen a total outflow of $100 million over three consecutive days. BRN analyst Valentin Fournier pointed out that this wave of outflows from cryptocurrency ETFs suggests that early investors interested in digital assets may have fully allocated their positions. To restart inflows in the future, new market demand or significant catalysts will be necessary.

Despite the recent notable outflows, David Foley, co-managing partner of the Bitcoin Opportunity Fund, believes this is not an unusual phenomenon. He stated that following significant price increases in Bitcoin during November and December 2024, investors began reassessing the economic and asset market direction in the first quarter of 2025, characterizing the outflows as being “within a manageable range.” Bitcoin’s price surged to a historical peak of $108,000 last December but subsequently retreated, recording a single-day maximum outflow of $671.9 million on December 19.
Nevertheless, the total cumulative net inflow for U.S. spot Bitcoin ETFs remains as high as $39 billion, with total assets under management reaching $111 billion, demonstrating its long-term appeal. Trading volume on Monday slightly increased to $3.8 billion, with BlackRock’s IBIT contributing $2.6 billion; however, this remains significantly lower compared to the peak of $9.5 billion on January 23 and the historical high of $9.9 billion on March 5, 2024.

This wave of outflows coincides with a general decline in cryptocurrency prices. Market analysts have pointed out that recent negative events have intensified risk-averse sentiments. Nansen’s chief research analyst Aurelie Barthere mentioned that the LIBRA scam and the hacking incident at Bybit exchange have been direct factors suppressing market confidence. Additionally, last week’s release of the U.S. services PMI falling to a 22-month low indicated GDP growth of only 0.6%, raising concerns about an economic slowdown. Fournier added that U.S. tariff disputes, the escalation of the Russia-Ukraine war, and the poor performance of AI stocks further triggered widespread risk-averse sentiments.

Despite the market being under pressure in the short term, some experts remain optimistic. Fournier believes that Bitcoin’s performance is comparable to that of the Nasdaq, demonstrating resilience. He noted that if the state and national Bitcoin strategic reserve plan promoted by the Trump administration is delayed, it could instead provide accumulation opportunities for long-term investors. He recommends maintaining a high level of investment and is optimistic about Solana’s potential for excess returns in the next rebound. Additionally, the progress of ETF applications for Solana and XRP is closely watched; if approved by the U.S. Securities and Exchange Commission (SEC), it could inject new momentum into the market. Fournier emphasized that despite inevitable short-term volatility, the long-term growth potential of cryptocurrencies remains worthy of anticipation.