Bitcoin ETFs Record Highest Net Outflow Day, Reaching $937.78M as BTC Falls Below $90K

Bitcoin exchange-traded funds (ETFs) in the U.S. saw their highest net outflows on February 25, 2025, totaling $937.78 million as Bitcoin dipped below the $90,000 threshold. This drop triggered a risk-off sentiment among investors amid growing macroeconomic concerns, marking the highest single-day outflow for these ETFs since their inception. The previous record for net outflows was $680 million on December 19, 2024.

The majority of the outflows came from Fidelity’s FBTC, which experienced a staggering $344.65 million in redemptions, its highest daily outflow since launch. BlackRock’s IBIT ETF followed closely behind, with $164.37 million in outflows. Other ETFs that saw significant outflows included Bitwise’s BITB ($88.3 million), Grayscale’s Mini Bitcoin Trust ($85.76 million), and Franklin Templeton’s EZBC ($74.07 million).

Despite the substantial outflows, daily trading volume for spot Bitcoin ETFs surged nearly 167%, reaching $7.74 billion, indicating strong trading activity amid the sell-off. Since their launch, these ETFs have still seen a net inflow of $38.08 billion overall.

Factors Driving the Sell-Off

The sell-off appears to have been spurred by Bitcoin’s decline below the crucial $90,000 mark, along with concerns over Donald Trump’s proposed tariffs on imports from Canada and Mexico, set to take effect in March. A 25% tariff could drive up inflation and slow economic growth, potentially putting pressure on the Federal Reserve to take action. Despite the Fed’s stance on only cutting interest rates when inflation approaches its 2% target, recent data suggests inflation is moving in the opposite direction, heightening concerns.

On-Chain Data Signals Increased Selling Pressure

On-chain data from Santiment also suggests increased selling pressure, with more Bitcoin being moved onto exchanges and whale holdings in non-exchange wallets declining. This shift typically signals potential selling behavior from large investors. Furthermore, the BTC supply held by funds is dropping, aligning with the negative net flows seen in spot Bitcoin ETFs. Since early February, these ETFs have experienced outflows on 12 of the last 16 trading days, totaling around $2.41 billion.

Analyst Insights

Matt Mena, a crypto research strategist at 21Shares, commented on the downturn, acknowledging that while some investors fear Bitcoin has peaked, on-chain and macro indicators suggest that the market is still in the early-to-mid stages of a bull cycle. Despite the pullback, Mena pointed out that crypto is still up over 50% from the previous year, highlighting its long-term resilience.

Mena views this correction as a “temporary reset” and not the end of the cycle, suggesting that it could be a strategic re-entry point for investors who hesitated to enter after the recent election. He warned that historically, crypto markets have punished those who hesitate at key dips, emphasizing that the window for accumulation may not last long.

In summary, while the recent sell-off in Bitcoin ETFs and the broader market has caused short-term uncertainty, analysts like Mena believe that it could represent a temporary dip in what remains a longer-term bullish cycle.