Key Points
- BlackRock’s Bitcoin ETF IBIT is experiencing record outflows due to current market volatility.
- Other funds and Ethereum ETFs are also seeing significant withdrawals.
BlackRock’s Bitcoin ETF fund, known as IBIT, is witnessing a rapid departure of investors. This is due to the ongoing market instability.
SoSoValue data reveals that IBIT logged over $418.1 million in net outflows on Wednesday. This marks the fund’s largest single-day withdrawal since its inception in January 2024.
Decline in Bitcoin ETFs
The withdrawals are occurring as Bitcoin has been consistently decreasing over the past week. The cryptocurrency has dropped by over 15% this month and is currently trading 21% below its all-time high of $109,026.02.
The previous record for IBIT’s daily withdrawal stood at $332.6 million, which occurred in early January, just before Bitcoin experienced a significant increase.
Despite the current net outflows, IBIT remains the largest of all United States spot Bitcoin ETFs. It has a total of $40.2 billion in net inflows and assets under management amounting to $51.6 billion.
The fund also leads in trading volume, making up 72% of all Bitcoin ETF activities this week. Out of the total $5.7 billion traded in these funds, IBIT handled $4.1 billion alone.
Market-Wide Decline
However, IBIT is not the only fund experiencing this downturn. The entire spot Bitcoin ETF market in the United States has seen numerous withdrawals, with investors retreating from their investments at a discouraging pace.
On February 26 alone, a total of $754.6 million was withdrawn from these funds, marking the second-largest single-day outflow in their history. Over the past week, the total outflows reached nearly $3 billion.
Several other funds experienced significant outflows, including Fidelity’s FBTC, ARK Invest’s ARKB, and Grayscale’s Mini BTC fund.
Ethereum exchange-traded funds are also feeling the impact. BlackRock’s ETHA product recorded $69.8 million in withdrawals on Wednesday, leading a five-day outflow streak that now totals $244.4 million for all spot Ethereum funds combined.
The increasing withdrawals coincide with a volatile economy, leading analysts to believe that concerns over President Trump’s tariff plans are adding more pressure to an already unstable market.
This decline is not confined to Bitcoin alone. Many other altcoins are also experiencing this crypto market instability. According to The Block’s GMCI 30 index, which tracks the top 30 digital assets, there has been a 12% drop already this week.
At the time of writing, there is little indication of an immediate recovery. Some market observers are predicting that Bitcoin is likely to continue facing selling pressure before stabilizing.
