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Bitcoin and Ethereum ETF Funds Continue to Flow Out
Outflow Scale is Manageable, Market Remains Resilient
Cryptocurrency Prices Decline
Long-Term Bullish Sentiment Unchanged
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 an outflow of $158.6 million, and Grayscale’s GBTC with an outflow of $59.5 million. The total net outflow from Bitcoin ETFs over the past five days has reached $1.07 billion, indicating that the market is experiencing its longest period of continuous redemptions since launch.
Meanwhile, the U.S. spot Ethereum ETF also faced significant outflows, with a net outflow of $78 million on Monday, led by BlackRock’s ETHA, which has seen a total outflow of $100 million over the past three days. BRN analyst Valentin Fournier pointed out that this wave of outflows from cryptocurrency ETFs suggests that early investors 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 outflows attracting attention, David Foley, co-managing partner of the Bitcoin Opportunity Fund, believes this is not an abnormal phenomenon. He stated that after a significant rise in Bitcoin prices in November and December 2024, investors began to reassess economic and asset market directions in the first quarter of 2025, and this outflow is considered “manageable.” Bitcoin prices reached a historic high of $108,000 in December last year, but subsequently retreated, recording a maximum single-day outflow of $671.9 million on December 19.
Even so, the total cumulative net inflow into the U.S. spot Bitcoin ETF remains at $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 is still significantly lower compared to the peak of $9.5 billion on January 23 and the historic high of $9.9 billion on March 5, 2024.
This wave of outflows coincides with a general decline in cryptocurrency prices. Market analysts point out that recent negative events have heightened risk-averse sentiment. Nansen’s chief research analyst Aurelie Barthere mentioned that the LIBRA scam and the hacking incident at Bybit exchange have directly dampened market confidence. Additionally, last week’s U.S. services PMI fell to a 22-month low, indicating GDP growth of only 0.6%, raising concerns about an economic slowdown. Fournier added that the U.S. tariff disputes, the escalation of the Russia-Ukraine conflict, and poor performance of AI stocks further triggered widespread risk aversion.
Despite the market 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 plans promoted by the Trump administration are delayed, it may provide accumulation opportunities for long-term investors. He recommends maintaining a high level of investment and is optimistic about Solana’s potential excess returns in the next rebound. Furthermore, the progress of ETF applications for Solana and XRP is under close scrutiny; if approved by the U.S. Securities and Exchange Commission (SEC), it could inject new momentum into the market. Fournier emphasized that although short-term volatility is inevitable, the long-term growth potential of cryptocurrencies remains promising.
