Advertisement
Crypto ETPs with Weakened Sentiment as 4$ Billion Leave Funds
- US Bitcoin and Ethereum spot ETFs suffered through a predominantly red February with ongoing net outflows while Trump’s strategic reserve plans generated market attention.
- CoinShares reported crypto exchange-traded products lost US$2.9 billion in the third consecutive week of outflows, bringing the three-week total to US$3.8 billion.
- While Bitcoin and Ethereum products experienced the heaviest losses, some altcoin ETPs like Sui and XRP managed modest inflows of US$15.5 million and US$5 million respectively.
- BlackRock’s IBIT, the world’s largest Bitcoin ETF, recorded the biggest outflows at US$1.17 billion, though several funds including Fidelity’s FBTC showed positive inflows on February’s final trading day.
As Trump’s strategic crypto reserve and his tariff threats dominate financial headlines, the exchange-traded funds (ETFs) holding crypto quietly continue to see money exiting.
The US Bitcoin and Ethereum spot ETFs have experienced a red February, as most of the month was dominated by net outflows.
Related: “No Change in US Crypto Banking Under Trump”, Says Custodia Bank CEO Caitlin Long
Not much data is available yet for March but figures for the last trading day of February show that the funds continue to lose money.
Bitcoin, Ethereum ETFs Lose, While Some Altcoin ETPs Make Gains
But for exchange-traded products (ETPs), which include a broader range of assets such as Sui, Solana and XRP, it’s a somewhat different picture.
A CoinShares analysis shows that the third consecutive week of net outflows saw US$2.9 billion (AU$4.66 billion) leaving the crypto-ETPs, with a three-week total of US$3.8 billion (AU$6.11 billion).
Interestingly most of the outflows are for Bitcoin and Ethereum, while Sui and XRP managed net inflows of US$15.5 million (AU$24.9 million) and US$5 million (AU$8 million) respectively.
James Butterfill, Head of Research at CoinShares sees several reasons for the outflows, including traders taking profit and lower sentiment around crypto.
We believe several factors contributed to this trend, including the recent Bybit hack, a more hawkish Federal Reserve, and the preceding 19-week inflow streak totalling US$29bn. These elements likely led to a mix of profit-taking and weakened sentiment toward the asset class.
James Butterfill, Head of Research at CoinShares Largest Bitcoin ETF Globally Loses More Than $1 Billion
As Bitcoin was the most affected asset, it’s not surprising that BlackRock’s IBIT, the largest Bitcoin ETF worldwide, had the biggest net outflows, with a total of US$1.17 billion (AU$1.88 billion). This was followed by Fidelity’s FBTC, which saw outflows of US$568.7 million (AU$914.9 million) over the past week.
Related: US Congress Forms ‘Crypto Caucus’ to Lead Global Digital Asset Innovation
Advertisement
FBTC and several others had net inflows on the last trading day of February, when the Fidelity ETF attracted US$176 million (AU$283.2 million), while Ark’s ARKB had US$193.7 million (AU$311.7 million) net inflows.
Combined, the US spot Bitcoin ETFs now hold 1.136 million BTC or 5.411% of all the coins, currently valued at US$98.2 billion (AU$158 billion).
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
