Bitcoin ETFs See $3.5B Outflows – Will March Bring a Rebound?
February 2025 was the worst month on record for US Bitcoin ETFs with $3.5 billion outflow, that’s 40,000 BTC leaving the market.
That coincided with the 18% price drop from $102,400 to $84,300 and everyone was unsure what was going on.
Bitcoin and Ethereum are bleeding harder than a bad breakup, $BTC down 20%, $ETH down 32%. ETFs flushed $3.5B, like investors ghosting after a one-night stand. Blame Trump’s tariffs, but remember, crypto always bounces back, like a bad ex you can’t quit.
— The Nutting Professor (@PRONUTSOL) February 28, 2025
Top funds, including BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Bitcoin ETF (FBTC) had their first ever outflows:
BlackRock’s IBIT had $721 million outflow (9,470 BTC) and now holds 573,136 BTC.
Fidelity’s FBTC lost $1.2 billion, one of the worst month ever.
Grayscale’s GBTC and BTC funds had $585 million outflow as investors continued to rotate into lower fee funds.
Analysts blame the sell off on a mix of macroeconomic concerns, profit taking and geopolitical uncertainty under the Trump administration.
ETF Inflows Return Amid Crypto Market Stabilization
Despite the big outflow in February, Bitcoin ETFs saw $94.9 million inflow on the first day of March and it looks like things are getting back on track. Data from Farside Investors:
ARK Invest’s ARKB ETF led with $193.7 million.
Fidelity’s FBTC followed with $176.03 million.
BlackRock’s IBIT had $243 million outflow.
Inflows came as Bitcoin bounced above $85,000 and it’s unclear if this will continue throughout March.
Will Bitcoin Recover or Extend The Correction?
Historically February’s poor performance extends into March. Bitcoin’s 17.39% drop last month was the worst February in a decade. Ethereum (ETH) suffered even worse 31.95% drop, everything is weak in the crypto market.
😱 Fear & Greed Index hits 2022 levels, but whales buy 15,000 BTC.
📉 Bitcoin ETFs see a $2.5B outflow in 3 days.
📊 CryptoQuant CEO: 30% corrections are normal; BTC dropped 53% in 2021 but still hit ATH. 🚀
— CRYPTO RADAR (@Vova61594849740) February 27, 2025
Matrixport report says hedge funds, not retail investors were the ones selling in February. Report warns further downside possible through March and April before the market recovers.
Key factors to watch this month include:
Institutional buying activity in Bitcoin ETFs.
Macroeconomic developments, including inflation data and Federal Reserve policy signals.
Bitcoin halving anticipation, which historically triggers pre-halving volatility.
Early March inflows are a good sign, but sustained buying is needed for Bitcoin to recover. Be prepared for more volatility as we navigate the uncertain terrain.
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