Bitcoin ETF outflows have surpassed $1 billion over two consecutive weeks, signaling a significant shift in investor sentiment towards the popular cryptocurrency. According to data from SoSoValue, U.S. spot Bitcoin exchange-traded funds recorded $559.41 million in net outflows in the past week, following on from the previous week’s $585.65 million in redemptions.
The negative momentum continued into the new week, with outflows of $60.63 million on Feb. 18, followed by increased outflows of $71.07 million and $364.93 million over the next two days. The trend persisted on Feb. 21, with an additional $62.77 million withdrawn by investors. The majority of outflows came from Grayscale’s GBTC, which saw $60.08 million exit the fund, along with Bitwise’s BITB and Fidelity’s FBTC contributing to the negative momentum.
Despite some positive inflows on certain days, Bitcoin ETFs have seen a total of $1.1 billion in net outflows since Feb. 6, making February 2025 the worst month for withdrawals since their inception over a year ago. This trend has raised concerns among investors, with some experts suggesting that the real demand for Bitcoin as a long-term asset may be lower than commonly believed.
Markus Thielen, head of research at 10x Research, noted that most spot Bitcoin ETF investors are using these products for arbitrage strategies rather than long-term holdings, with only 44% of inflows tied to long-term investments. This shift in investor sentiment could be indicative of broader economic uncertainty, as evidenced by the recent inflows into Gold ETFs and Berkshire Hathaway’s record-breaking cash holdings.
Furthermore, comments from former President Donald Trump about imposing reciprocal tariffs on almost every country if re-elected have added to concerns about inflation and trade disruptions. This, coupled with Bitcoin’s downward trend and resistance, has led some investors to move from ETFs into cash as a precautionary measure.
Overall, the recent outflows from Bitcoin ETFs highlight the evolving landscape of cryptocurrency investments and the impact of external factors on investor behavior. As the market continues to react to economic uncertainties and geopolitical developments, it remains to be seen how Bitcoin and other digital assets will fare in the coming months.