Crypto Chaos: U.S. Spot Bitcoin ETFs Bleed $1 Billion in Record Daily Exodus

In a notable twist of events, ETFs (exchange-traded funds) in the USA saw their biggest daily outflows ever on February 26, 2025. According to SoSoValue, the total withdrawals of these assets have hit an astounding $1.01 billion. Among 12 spot Bitcoin ETFs, ten have shown net outflows exceeding the prior record of $671.9 million (as of December 19, 2024) 

During this period, the FBTC (Fidelity Wise Origin Bitcoin Fund) saw a withdrawal of $344.65 million while iShares Bitcoin Trust (IBIT) followed the same trend with $164.3 million in outflows. Additionally, Valkyrie’s BRRR lost around $100 million and BITB experienced an outflow of $88.3 million as well.  

This recent trend of withdrawals has reflected the wider decline in the crypto market that started in December 2024, where Bitcoin has already fallen below $88,000. Other significant cryptocurrencies, such as Solana, XRP, and Ether, have faced an even steeper drop – fostering a feeling of bearish sentiment across the digital space 

Analyst Insights: How Will the Future of Cryptocurrency Shape Up 

Nate Geraci, president of the ETF Store, expressed his amazement considering how much the market has tanked in a week. However, he also thinks that cryptocurrencies will be here for a long period, no matter how many downturns it takes. 

A report created by 10x research has revealed that only 44% inflows into USA spot Bitcoin ETFs are driven by long-term investments. However, the majority, on the other hand, are made by people using short-term arbitrage strategies. According to Markus Thielen, this trend indicates a smaller demand for Bitcoin as a long-term asset – which is why they keep on buying and selling the coins to give a boost to the real-world money, such as USD, EUR, GBP, etc. 

So, if the market were to improve again, it’d be important for the traders to focus on holding their coins for more than a year instead of focusing on day trading.