AI Summary
- US spot Bitcoin ETFs witnessed their largest-ever outflows after Bitcoin fell to $86k on February 25, 2025. According to on-hain data from Coinglass, daily outflows reached $900M as Bitcoin struggled to maintain its $90k price range. Crypto analysts believe BTC is under the spell of a bear trap as macroeconomic factors weigh on BTC’s performance. .
- US spot BTC ETFs witnessed the largest outflows since their introduction in 2024 as Bitcoin fell under $90k per token.
- According to data from CoinGlass, total net outflows from February 25, 2025, totaled $934 million as BTC fell 20% from its all-time high of $108k.
- Leading Bitcoin ETF IBIT (iShares Bitcoin Trust) led by BlackRock witnessed $164 million in outflows while Fidelity’s Fidelity Wise Origin Bitcoin Fund saw $344 million.
US spot Bitcoin ETFs witnessed their largest-ever outflows after Bitcoin fell to $86k on February 25, 2025.
According to on-hain data from Coinglass, daily outflows reached $900M as Bitcoin struggled to maintain its $90k price range.
Crypto analysts believe BTC is under the spell of a bear trap as macroeconomic factors weigh on BTC’s performance.
US spot Bitcoin ETFs suffer largest outflows on record
US spot BTC ETFs witnessed the largest outflows since their introduction in 2024 as Bitcoin fell under $90k per token.
According to data from CoinGlass, total net outflows from February 25, 2025, totaled $934 million as BTC fell 20% from its all-time high of $108k.
Leading Bitcoin ETF IBIT (iShares Bitcoin Trust) led by BlackRock witnessed $164 million in outflows while Fidelity’s Fidelity Wise Origin Bitcoin Fund saw $344 million.
Arthur Hayes of BitMex exchange believes institutions invested in Bitcoin ETFs were using the stocks as arbitrage, long on BTC ETFs and short on CME futures to earn yield.
Once Bitcoin drops, Hayes believes funds will sell their ETF holdings and switch back to CME futures until the crypto market settles.
For Hayes, Bitcoin could fall to lows of $70k before making a new continuation as institutional investors take profits.
Markus Thielen of 10x Research said $17.5 billion, 44%, of Bitcoin ETF holders are genuine long-term investors while the 56% majority may be using the ETFs for arbitrage strategies.
From 10x Research:
Although Bitcoin ETFs have attracted $38.6 billion in net inflows since their January 2024 launch, our analysis suggests that only $17.5 billion (44%) represents genuine long-only buying.
The majority—56%—is likely tied to arbitrage strategies, where short Bitcoin futures positions offset inflows.
BTC bear traps are afoot
Looking at Bitcoin’s performance after February 25, many traders believe the token could be in the midst of a bear trap, shaking out market participants.
During such shakeouts, it’s common for Bitcoin volatility to remove overleveraged traders and impose fear on investors, causing prices to go lower before rebounding quickly.
Macor economic factors from Trump’s Canadian and Mexican tariffs and the war in Ukraine may also be affecting Bitcoin as uncertainty from traditional markets leaks over into crypto.
After making a new all-time high in February, the S&P 500 (SPX) fell below $6000, causing volatility in the wider stock market. For a true bottom to be found it may take some weeks or a month for real confirmation.
