Crypto Flows Diverge as Bitcoin and Ethereum ETFs Experience Large Outflows

Crypto markets have been experiencing significant shifts in recent days, with Bitcoin and Ethereum ETFs leading the charge. According to data, on February 23, a total of $253 million was withdrawn from these funds, marking one of the largest outflows this year.

The majority of this outflow came from Bitcoin ETFs, which lost $203.8 million in a single day. BlackRock's IBIT saw the largest loss with $116.4 million removed, while Fidelity's FBTC and Bitwise's BITB also reported significant withdrawals. Grayscale's GBTC posted $13.1 million in withdrawals, but other issuers remained flat.

Ethereum ETFs also experienced a decline in assets under management, recording $49.5 million in outflows. BlackRock's ETHA was hit particularly hard with $45.4 million removed, while Fidelity's FETH and VanEck's ETHV saw smaller withdrawals. Despite this downturn, analysts attribute the flows to routine rebalancing activities rather than a decrease in investor interest.

Interestingly, Solana ETFs bucked this trend by attracting $8 million in inflows on the same day. Bitwise's BSOL and Fidelity's FSOL led the charge with $6.3 million and $0.9 million respectively. Grayscale's GSOL also saw a modest gain of $0.8 million, but XRP ETFs remained flat.