The crypto exchange-traded fund (ETF) market had another turbulent week from February 24 to 28, with bitcoin ETFs seeing net outflows of $2.61 billion and ether ETFs losing $335.35 million. This marks the third consecutive week of declining inflows, highlighting investor caution amid broader market uncertainties.
Record $1 Billion Bitcoin ETF Withdrawal
The most significant outflows occurred on February 26, when bitcoin ETFs recorded a single-day withdrawal of $1 billion—the highest in history. This trend pushed the total net assets of bitcoin ETFs below the $100 billion mark, settling at $95.38 billion.
Key contributors to these outflows included:
- BlackRock’s IBIT: $1.17 billion
- Fidelity’s FBTC: $568.65 million
- Grayscale’s GBTC: $188.84 million
- Grayscale’s BTC: $147.93 million
- Valkyrie’s BRRR: $112.84 million
- WisdomTree’s BTCW: $95.10 million
Ether ETFs Also Under Pressure
Ether ETFs followed a similar trajectory, facing a net weekly outflow of $335.35 million. The total net assets of ether ETFs dropped below $9 billion, settling at $8.06 billion.
Some of the biggest losers in the ether ETF market included:
- Fidelity’s FETH: $56.30 million
- BlackRock’s ETHA: $30.16 million
- Bitwise’s ETHW: $20.72 million
- Grayscale’s ETHE: $11.66 million
Ether ETFs have now experienced seven consecutive days of outflows, while bitcoin ETFs saw eight straight days of withdrawals before a slight inflow on February 28.
Market Uncertainty Weighs on Crypto ETFs
Analysts point to several factors contributing to this persistent downturn in crypto ETF inflows:
- Macroeconomic concerns: Ongoing economic uncertainties and new tariffs have dampened investor confidence.
- Security risks: The Bybit hack and other recent crypto thefts have raised concerns about asset safety.
- Regulatory disappointment: Some investors had hoped for pro-crypto policies under President Trump, but expectations have not been met.
What’s Next for Crypto ETFs?
While February was a challenging month for crypto ETFs, market watchers are closely observing March trends to see if inflows return. The upcoming Bitcoin halving event and potential regulatory clarity could shift investor sentiment in the coming weeks.
For now, crypto ETFs remain in a bearish phase, with caution prevailing among institutional and retail investors alike.
