Bitcoin Exchange Traded Funds (ETFs) in the United States have seen six consecutive days of outflows, reflecting a sharp drop in institutional interest. On Tuesday, net outflows totaled a staggering $937 million, making it the largest daily outflow since its inception. The phenomenon was exacerbated when the price of Bitcoin (BTC) lost its critical support level, falling below $88,500 and dragging the weekly decline to more than 7.52%. This situation also triggered a drop in the crypto market as a whole.
Amid the crypto market crash and the loss of BTC’s key support level, Bitcoin ETFs in the United States experienced a surge in outflows over the past week. According to Velte Lunde, Head of Research at K33 Research, the Bitcoin exchange-traded product (ETP) market recorded the largest net outflow in history with 14,579 BTC being withdrawn globally.
Lunde also explained that Bitcoin ETFs have faced continuous selling pressure throughout February, with 69% of the total trading days this month recording net outflows. The trend highlights a consistent reduction in investor exposure to Bitcoin ETFs, reflecting cautious sentiment amid the crypto market’s volatility.
On Tuesday, Fidelity’s FBTC ETF saw its largest outflow of $344 million, while BlackRock’s IBIT saw $144 million, according to data from Farside Investors. Fidelity has also seen its sixth straight day of outflows. Overall, investors have pulled $1.7 billion out of crypto-related exchange-traded products (ETPs) and ETFs so far this week.
CryptoQuant analyst Amr Taha reported a significant spike in Bitcoin activity on exchanges, with the “Exchange Inflow (Top 10)” metric exceeding 5,000 BTC three times in a single day after the release of the US Consumer Confidence report.
Consumer confidence in the US has fallen to an eight-month low, driven by concerns about inflation and the impact of new tariffs introduced under the second Trump administration. The increased BTC inflows to exchanges point to potential selling pressure as large or institutional holders may move Bitcoin to exchanges for liquidation. This could trigger more outflows from Bitcoin ETFs in the near future.
BitMEX co-founder Arthur Hayes suggested that Bitcoin could fall to between $70,000 and $75,000 if former President Donald Trump fails to pass his proposed budget, including spending increases and the debt limit.
“This is a test of how much influence Trump has in the Republican Party,” Hayes said, advising investors to “be patient, wait, and see” how the situation develops. At the time of writing, BTC is trading at $88,488 with daily trading volume down to $68 billion.
