Bitcoin ETF Outflows Surge 340%, with Fidelity’s FBTC Leading the Way

Spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a sharp surge in outflows on February 12, driven by expectations of a more hawkish stance from the Federal Reserve regarding interest rate cuts.

According to SoSoValue data, the 12 spot Bitcoin ETFs recorded outflows of $251.03 million, marking a 342% increase from the $56.76 million seen the previous day. Fidelity’s FBTC fund led the outflows for the third consecutive day, with $101.97 million exiting the fund. Following FBTC was ARK and 21Shares’ ARKB, which saw $97.03 million in outflows. Additional outflows included:

• Bitwise’s BITB: $25.94 million
• BlackRock’s IBIT: $22.11 million
• Invesco Galaxy’s BTCO: $9.69 million
• Grayscale’s GBTC: $6.92 million
• Valkyrie’s BRRR: $3.71 million

Despite the outflows, Grayscale’s mini Bitcoin Trust stood out by recording $16.34 million in inflows, while the remaining three BTC ETFs saw no net movement.

On the same day, the total trading volume for Bitcoin ETFs reached $2.53 billion, and cumulative net inflows stood at $40.21 billion.

Bitcoin ETFs weren’t the only ones to experience outflows—nine Ether ETFs also turned negative. ETH ETFs recorded $40.95 million in redemptions, reversing the previous day’s $12.58 million in inflows. The losses came entirely from Grayscale’s ETHE and Fidelity’s FETH funds, which saw outflows of $30.23 million and $10.72 million, respectively. The daily trading volume for ETH ETFs stood at $349.41 million, with total net inflows since launch at $3.13 billion.

The outflows from both Bitcoin and Ethereum ETFs coincided with a drop in Bitcoin and Ethereum prices, triggered by stronger-than-expected U.S. inflation data. The January inflation rate came in at 3.3% year-over-year, exceeding the forecasted 3.1%.

With inflation running hotter than expected, market participants now anticipate only one interest rate cut in 2025, with the Fed likely holding rates steady until 2026. This outlook weighed on the crypto market, as digital assets typically perform better in environments with lower interest rates.

David Hernandez, a crypto investment specialist at 21Shares, commented on the impact of the inflation data, noting that it affected both Bitcoin prices and S&P 500 futures. However, he suggested that this reaction could set the stage for a major rally if the Fed decides to cut rates later this year. Hernandez added that a rate cut could lead to a flood of liquidity, benefiting both equities and cryptocurrencies. “Bitcoin could break through $110,000 and solidify its place in six-digit territory,” he predicted, highlighting the potential for BTC to reach new all-time highs.