Record-Breaking Bitcoin ETF Withdrawals Signal Market Sell-Off
BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin exchange-traded fund (ETF), experienced unprecedented withdrawals on Feb. 26 as the cryptocurrency market continued its downward trend over the past seven trading days.
IBIT Records Highest Single-Day Outflow
- IBIT lost 5,002 BTC, valued at $418 million, marking the fund’s highest single-day outflow.
- This outflow surpassed its previous record of $332 million set in January.
Significant Sector-Wide Outflows
As a result of IBIT’s withdrawals, which manages approximately $48 billion in assets, the total sector-wide outflows on that day amounted to $756 million.
Other ETFs Facing Selling Pressure
- Fidelity’s Wise Origin Bitcoin Trust (FBTC) saw investors withdraw $145.69 million worth of Bitcoin.
- The Ark 21Shares Bitcoin ETF (ARKB) recorded $60.46 million in outflows.
- Grayscale’s Mini Bitcoin Fund experienced $55.97 million leaving its holdings.
Continued Sell-Off Trend
This wave of exits followed a larger outflow of $937.7 million on Feb. 25, extending a streak of seven consecutive days of sell-offs. In total, nearly $3 billion left Bitcoin ETFs in the past week, indicating growing investor caution amidst market uncertainty.
