U.S. spot Bitcoin ETFs have experienced three consecutive days of net outflows, losing nearly $500 million over this period leading up to Feb. 20.
The three day outflows started with $61.4 million on Feb. 18, followed by $71.07 million on Feb. 19. However, on Feb. 20, net outflows surged to $364.93 million, according to data from SoSoValue. This marks the most significant single-day decline in the three days.
BlackRockโs IBIT experienced the largest single-day withdrawal, losing $112.05 million. The next biggest outflows were $98.3 million from ARK Investโs ARKB and $89.24 million from Fidelityโs FBTC. With $33.5 million in outflows, Grayscaleโs GBTC continued its outflow streak following its conversion from a trust structure. Interestingly, Bitwiseโs BITB had inflows of $24.1 million, while VanEckโs HODL witnessed a slight gain of $4.18 million.
Bitcoin (BTC) ETF outflows have sparked worries about changing investor sentiment. However, institutional demand seems to be growing. The recent $436.9 million investment in BlackRockโs IBIT by Abu Dhabiโs sovereign wealth fund, Mubadala Investment Company, shows long-term confidence.
In addition, Barclays has also revealed a $131 million investment in IBIT as of Q4 2024 in its Feb.13 form 13F filing with the Securities and Exchange Commission.
Crypto analyst Miles Deutscher noted that as markets factored in early demand from ETF approvals and euphoria surrounding Trump, inflows into Bitcoin and Ethereum (ETH) ETFs have decreased. Investors are currently waiting for the next significant catalyst to push prices higher, as a large portion of that purchasing pressure has already been realized.ย
Uncertainty has also increased as a result of the Strategic Bitcoin Reserveโs delayed introduction. Many investors had anticipated it would take place soon after Donald Trump took office and possibly spur new institutional inflows.
Despite the outflows, Bitcoinโs price has remained relatively stable at $98,000, up 1% over the last day. Long-term demand from institutions is a crucial aspect to monitor, according to analysts, as it might help sustain Bitcoinโs momentum in the coming months.
