BlackRock Bitcoin ETF experiences record $420M outflow

BlackRock's iShares Bitcoin Trust (IBIT) experienced a record $420 million outflow on February 26, 2025, as Bitcoin (CRYPTO:BTC) ETFs saw a significant wave of capital exiting the funds.

This marks IBIT's largest single-day outflow since its launch and surpasses the previous high of $332 million on January 21.

The $420 million outflow from BlackRock contributed to a total daily outflow of $756 million across various Bitcoin ETFs.

Data indicates that on February 25, the 11 Bitcoin ETFs saw a net outflow of $937.9 million.

This outflow marks the sixth consecutive day of net losses for Bitcoin ETFs.

As a group, the Bitcoin funds shed roughly $2.1 billion over six consecutive days.

The Fidelity Wise Origin Bitcoin Fund (FBTC) also experienced significant outflows, with $145.7 million exiting the fund on February 26.

On February 25, it saw a record outflow of $344.7 million.

Bitwise, Ark 21Shares, Invesco, Franklin, WisdomTree, and Grayscale all experienced outflows ranging from $10 million to $60 million.

The large outflows from Bitcoin ETFs have coincided with a decline in the overall cryptocurrency market.

Total market capitalisation fell by 5.6% to $2.9 trillion, and Bitcoin dropped to a low of $82,455 on February 26.

The market correction now stands at 25%, with $1 trillion exiting the space since its all-time high on December 17.

Analysts have weighed in on the potential reasons behind the outflows.

Some suggest that the majority of Bitcoin ETF investors are hedge funds seeking arbitrage yields, not long-term BTC investors.

These funds are now unwinding their positions as these yield opportunities diminish.

BitMEX (CRYPTO:BMEX) co-founder Arthur Hayes predicted that Bitcoin could fall to $70,000 due to continued outflows from spot ETFs.

At the time of reporting, the Bitcoin (BTC) price was $85,939.18.