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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Why Trust Cryptonews
Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced their largest-ever daily net outflows on Tuesday, with total withdrawals reaching $1.01 billion, excluding data from Ark Invest’s ARKB, according to SoSoValue.
Out of the 12 spot Bitcoin ETFs, 10 reported net outflows, marking a significant retreat by investors amid broader market volatility.
Leading the outflows, the Fidelity Wise Origin Bitcoin Fund (FBTC) saw a withdrawal of $344.65 million, while BlackRock’s iShares Bitcoin Trust (IBIT) followed with $164.3 million in outflows.
Valkyrie, Bitwise, and Grayscale See Major Outflows Amid Bitcoin ETF Withdrawals
Other notable losses included $100 million from Valkyrie’s BRRR, $88.3 million from Bitwise’s BITB, and $85 million from Grayscale’s Mini Bitcoin Trust.
Funds from Franklin Templeton (EZBC), Grayscale (GBTC), and Invesco (BTCO) also experienced substantial net outflows.
As of the time of reporting, Ark Invest and 21Shares’ ARKB had not disclosed their data.
The record-breaking outflows surpassed the previous high of $671.9 million recorded on December 19, which coincided with Bitcoin’s sharp decline from a peak of approximately $108,000.
Over the past six consecutive trading days, spot Bitcoin ETFs have seen more than $2 billion in cumulative outflows, underscoring growing investor caution.
Tuesday’s significant withdrawals mirrored a broader crypto market downturn, with Bitcoin dropping to a yearly low of around $88,000.
Other major cryptocurrencies, including Ether (ETH), XRP, and Solana (SOL), experienced even sharper declines, amplifying bearish sentiment across the digital asset space.
Commenting on the trend, Nate Geraci, President of the ETF Store, expressed surprise at the persistent skepticism toward crypto from traditional financial institutions.
“I’m still amazed at how much TradFi hates Bitcoin and crypto,” Geraci posted on X (formerly Twitter) on February 26.
Only 44% of Spot Bitcoin ETF Inflows Aim for the Long Haul
As reported, a significant portion of inflows into U.S. spot Bitcoin ETFs is driven by short-term trading strategies rather than long-term investments, according to a report by 10x Research.
Since the launch of spot Bitcoin ETFs in January 2024, the products have attracted approximately $39 billion in net inflows.
However, just $17.5 billion—around 44%—of that reflects genuine long-term buying, said Markus Thielen, head of research at 10x Research.
The majority of the inflows, about 56%, are linked to arbitrage strategies, particularly the “carry trade.”
This approach involves investors buying spot Bitcoin through ETFs while simultaneously shorting Bitcoin futures to profit from price discrepancies between the two markets.
“This indicates that the actual demand for Bitcoin as a long-term asset in multi-asset portfolios is significantly smaller than media reports suggest,” Thielen explained.
Just recently, asset management firm 21Shares officially filed with the SEC to introduce a spot Polkadot ETF.
Likewise, Tuttle Capital Management filed applications for ten cryptocurrency-based leveraged ETFs, including funds tied to popular meme coins.
Analysts suggest the filings are part of a broader strategy to test the boundaries of an SEC under Trump-era crypto-friendly regulators.
