Bitcoin ETF Outflows Surge as BlackRock Loses $420M in Record Streak
- Research confirms BlackRock’s iShares Bitcoin Trust (IBIT) saw a record $420 million outflow on February 26, 2025, marking the seventh consecutive day of losses for U.S. Bitcoin ETFs, totaling nearly $3 billion. This comes amid Bitcoin’s drop to $82,455, the lowest this year, driven by market panic and Trump’s tariff threats. An unexpected twist is the contrast with BlackRock’s earlier $37 billion inflow success in 2024, raising questions about a shift in institutional sentiment.
BlackRock’s ETF, launched in January 2024, tracks Bitcoin’s price and has been a flagship for crypto adoption. The seven-day losing streak is a sharp reversal from its banner year, reflecting broader market unease.
This outflow signals a potential pivot in investor confidence, possibly tied to recent volatility like the Bybit hack and economic pressures. It’s a critical moment—will Bitcoin rebound, or is this the start of a deeper slide?
Eyes are on whether this triggers a buying dip or a bearish spiral, with BTC at a pivotal $70K-$74K range.
The crypto market’s reeling as Bitcoin ETF outflows reach a fever pitch, with BlackRock’s iShares Bitcoin Trust (IBIT) hemorrhaging a record $420 million on February 26, 2025. This jaw-dropping exit marks the seventh straight day of losses for U.S. Bitcoin ETFs, totaling nearly $3 billion sucked out of the sector, per CoinGlass data. Bitcoin itself tanked to $82,455—its lowest this year—dragging sentiment to “Extreme Fear” levels not seen since 2022’s Terra collapse, as reported by Cointelegraph.
What’s behind this Bitcoin ETF outflows storm? The chaos kicked off with the $1.4 billion Bybit hack on February 21, sparking a $325 billion market rout. Now, U.S. President Donald Trump’s tariff threats are stoking fears of economic fallout, with Arthur Hayes of BitMEX predicting BTC could crash to $70,000. BlackRock’s IBIT, which raked in $37 billion in 2024 and hit a $54 billion peak, shed 5,000 BTC in a day—eclipsing its prior $332M record from January. Fidelity’s FBTC followed with $145.7M out, while Bitwise, ARK, and Grayscale saw losses from $10M to $60M.
This Bitcoin ETF outflows wave flips the script on BlackRock’s golden run, raising eyebrows after it outpaced gold ETFs in December 2024. ETF Store’s Nate Geraci calls it a “short-term blip,” but X posts are split—some see a dip to buy, others a cliff to flee. With $756M exiting ETFs that day alone, it’s a gut punch to institutional faith. Analysts like Markus Thielen from 10x Research note hedge funds unwinding arbitrage bets, not long-term hodlers, as the yield chase cools.
The Bitcoin ETF outflows saga tests crypto’s resilience. Will BTC hold the $74K line traders are eyeing, or is this a prelude to a 2022-style meltdown? With volatility spiking and fear ruling, the market’s at a crossroads—panic sell or diamond hands? https://x.com/Lutcheann