The appetite for Bitcoin within the US appears to have diminished, particularly in terms of transactions via exchange-traded funds (ETFs) based locally. Data from FarSide indicates that February has been predominantly marked by outflows from BTC ETFs.
**BTC ETFs Experience Predominantly Outflows**
The introduction of 11 spot Bitcoin ETFs in the US last January was initially met with enthusiasm from investors, who eagerly moved their funds from the Grayscale Trust into other funds and even injected new capital into options like BlackRock’s IBIT and Fidelity’s FBTC. The summer saw little activity, but the situation changed post-US election as expectations of a more favorable regulatory environment prompted investors to allocate fresh funds into ETFs. However, this enthusiasm seems to have waned. Factors like President Trump’s stance on various issues, including tariffs and the war in Ukraine, have contributed to a decline in investor confidence in BTC, which is mirrored by the reduced inflows into ETFs.
February, known for typically strong bitcoin price performance, has witnessed only four days of net inflows: February 4, 5, 7, and 14. The past few weeks have been challenging for financial instruments tracking BTC’s performance, with only two out of the last 11 trading days seeing gains, while withdrawals occurred on all other days. On February 20, funds saw a significant net outflow of $364.8 million, and even IBIT, the largest BTC ETF globally, faced $112 million in withdrawals. Since February 6, Bitcoin ETFs have seen $1.1 billion in net outflows, making February 2025 the most challenging month since these products were launched over a year ago.
**And ETH?**
While not as severe as Bitcoin’s situation, ETH also faced challenges, ending last week negatively. After four days of net inflows, products tracking Ethereum saw withdrawals of $13.1 million on Thursday and $8.9 million on Friday. Despite these setbacks, February has generally been more favorable for Ethereum ETFs, with only four days in the red so far. However, after February 4, when investors injected $307.8 million into ETH ETFs, enthusiasm diminished, and subsequent inflows have been modest.
#Bitcoin #Crypto #ETFs #Ethereum #Investing
