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Bitcoin and Ethereum ETF Funds Continue to Experience Outflows
Outflow Scale is Manageable, Market Remains Resilient
Cryptocurrency Prices Drop
Long-term Bullish Sentiment Unchanged
According to a report from The Block, on February 25, 2025, the U.S. spot Bitcoin exchange-traded fund (ETF) recorded a net outflow exceeding $516.4 million on Monday (February 24), marking the fifth-largest single-day capital 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 cumulative net outflow from Bitcoin ETFs over five consecutive days has reached $1.07 billion, indicating that the market is experiencing the longest redemption period since their launch.
Meanwhile, the U.S. spot Ethereum ETF also faced outflows, with a net outflow of $78 million on Monday, primarily driven by BlackRock’s ETHA, which has seen a total outflow of $100 million over three consecutive days. BRN analyst Valentin Fournier pointed out that this wave of cryptocurrency ETF outflows suggests that early investors interested in digital assets may have fully allocated their positions. In the future, restarting capital inflows will rely on new market demand or significant driving factors.
Despite the recent notable outflows, 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 reassessing the direction of the economy and asset markets in the first quarter of 2025, characterizing this outflow as “manageable.” Bitcoin’s price surged to 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.
Nevertheless, the total cumulative net inflow of U.S. spot Bitcoin ETFs remains as high as $39 billion, with total assets under management reaching $111 billion, indicating its long-term attractiveness. Trading volume on Monday rose slightly 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 capital outflows coincides with a general decline in cryptocurrency prices. Market analysts note that recent negative events have exacerbated risk-averse sentiment. Nansen’s chief research analyst Aurelie Barthere mentioned that the LIBRA scam and the hacking incident at Bybit exchange have directly undermined 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 economic slowdown. Fournier added that U.S. tariff disputes, escalating tensions in the Russia-Ukraine war, and poor performance of AI stocks have further triggered widespread risk aversion.
Despite the market facing pressure in the short term, some experts maintain an optimistic outlook. Fournier believes that Bitcoin’s performance is comparable to that of the NASDAQ, demonstrating resilience. He pointed out that if the state and national Bitcoin strategic reserve plans promoted by the Trump administration are delayed, it might 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 wave of rebound. Additionally, the progress of Solana and XRP’s ETF applications is closely watched; if approved by the U.S. Securities and Exchange Commission (SEC), it could inject new momentum into the market. Fournier emphasized that while short-term volatility is inevitable, the long-term growth potential of cryptocurrencies remains promising.