BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest single-day outflow to date, with investors pulling out 5,000 BTC, equivalent to $420 million—on February 26. This marks a new record for the fund, surpassing the $332 million withdrawal recorded on January 2.
The broader market is also feeling the pressure, with total outflows from spot Bitcoin ETFs reaching $756 million for the day, according to preliminary data from CoinGlass.
The ongoing outflows come amid a staggering $1.1 billion exit on February 24, marking a seven-day streak of withdrawals that has now totaled nearly $3 billion.
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Fidelity’s Bitcoin ETF Sees $145.7 Million Outflow Amid Market Sell-Off
Fidelity’s Wise Origin Bitcoin Fund (FBTC) was another major contributor to the outflows, shedding $145.7 million on the same day.
Other funds, including those managed by Bitwise, Ark 21Shares, Invesco, Franklin, WisdomTree, and Grayscale, reported outflows ranging between $10 million and $60 million.
The ongoing sell-off has significantly impacted the crypto market, with total market capitalization falling by 5.6% to $2.9 trillion on February 26. Bitcoin itself plunged to a low of $82,455, deepening its correction to 25% since reaching its all-time high on December 17. Over $1 trillion in market value has been wiped out during this downturn.
Despite the sharp decline, some analysts remain optimistic. CryptoQuant CEO Ki Young Ju cautioned against panic selling, emphasizing that a 30% correction is common during Bitcoin bull cycles. He noted that Bitcoin dropped 53% in 2021 before rebounding to new highs.
FIDELITY SOLD
ARK SOLD
GRAYSCALE SOLDBUT BLACKROCK… ALSO SOLD $150M $BTC pic.twitter.com/Zfn4W2iIhk
— Arkham (@arkham) February 26, 2025
Industry experts, including BitMEX co-founder Arthur Hayes, suggest that much of the selling pressure comes from hedge funds using Bitcoin ETFs for arbitrage rather than long-term investment.
As these yield opportunities fade, many traders are unwinding their positions, contributing to the sustained outflows. Hayes has projected that Bitcoin could fall to $70,000 if ETF outflows continue.
Adding to the market uncertainty, traders have also set their sights on the $74,000 support level amid economic concerns, including potential trade tariffs from U.S. President Donald Trump.
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Over Half of Spot Bitcoin ETF Investors Engage in Arbitrage Strategies, Says 10x Research
Markus Thielen, head of research at 10x Research, has also noted that over half of spot Bitcoin ETF investors are involved in ETF arbitrage strategies.
He said that the majority of the inflows, about 56%, are linked to arbitrage strategies, particularly the “carry trade.”
While the unwinding of these trades causes significant ETF outflows, Thielen stressed that the process is market-neutral, with simultaneous selling of ETFs and purchasing of Bitcoin futures effectively offsetting broader price impacts.
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Key Takeaways
- BlackRock’s Bitcoin ETF saw a record outflow of 5,000 BTC ($420 million) on February 26.
- The broader crypto market suffered a 5.6% decline, with Bitcoin dropping to $82,455.
- Analysts attribute the sell-off to hedge funds unwinding arbitrage positions.
The post BlackRock’s Bitcoin ETF Sees Record 5,000 BTC Outflow As Market Dip Deepens appeared first on 99Bitcoins.
