US Bitcoin and Ethereum Spot ETFs Experience Significant Net Outflows

Despite recent declines in cryptocurrency prices, US spot ETFs have been experiencing significant outflows. On February 23, Bitcoin and Ethereum spot ETFs recorded a combined $253 million in net withdrawals.

The sudden drop in investor confidence can be attributed to the brief slip of Bitcoin's price below the $65K level, coupled with broader market pressure linked to fresh U.S. tariff policy headlines. This move signals that investor sentiment remains fragile, especially given the current state of macroeconomic uncertainty.

Bitcoin funds bore the brunt of the damage, accounting for approximately 80% of the total outflows. The largest ETFs in the sector posted significant declines, with most major products finishing the day in the red. However, one notable exception was VanEck's HODL ETF, which saw a modest $6.35 million net inflow.

This modest uptick is an indication that some long-term investors are still willing to take advantage of price dips as buying opportunities. Despite this, the overall trend remains cautious, with ETF flows reacting quickly to macro headlines and risk sentiment.