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Market instability has led to record outflows of Bitcoin and digital assets ETPs.
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On February 24, US Spot Bitcoin ETFs experienced withdrawals of over $1 billion.
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XRP-based ETPs have shown resilience, with $38 million of inflows despite the market downturn.
Bitcoin and other cryptocurrencies have felt the impact of recent market instability on digital asset exchange-traded product (ETPs) as well as Bitcoin-specific funds.
James Butterfill, the head of research at CoinShares pointed out that this week’s outflows reached $2.6 billion, the highest ever for Bitcoin and digital assets ETPs. He notes, however, that the selling seems to be cooling down as the basis trade unwinds.
The global ETP market, which includes Bitcoin, experienced significant fluctuations between February 3, 2025 and February 24, 2025. Global ETPs showed inflows of more than $1 billion. The market experienced a surge. This peak was then followed by a drop in the weeks that followed, with notable dips on both February 10 and 17
The US Spot Bitcoins ETFs, however, maintained a stable performance throughout this period. The most notable event was on February 24 when Bitcoin ETFs experienced an outflow. This showed a shift in investor confidence despite increasing economic uncertainty.
Related Crypto Giant CoinShares Reduces Bitcoin ETP Management Fees
Spot Bitcoin ETFs Suffer Massive Losses
The US Spot Bitcoin Funds, which are part of 11 SEC-approved Bitcoin funds, experienced their largest ever outflows on 24 February, with more than 1 billion dollars worth of investments being withdrawn in just 24 hours.
This unusual selloff marks one of the worst days for Bitcoin ETFs, surpassing the previous records set in December, when outflows reached 672 million dollars.
Related toSpot Bitcoin eTf Surge Set To Eclipse $50 Billion Crypto ETP market
Bitcoin ETF Outflows – Economic Concerns and Market pressure
The withdrawals were made after a six-day period in which the funds had lost more than $ 2 billion.
This large withdrawal is a result of US economic policy concerns. These include trade tariffs, inflation and the recent US Presidential Inauguration. These factors have increased pressure on the crypto market and led to a continued decline in the prices of digital assets.
XRP ETPs see inflows, contrasting Bitcoin’s trend
The outflows, which amounted to $571 million, were primarily focused on Bitcoin, by far the most popular cryptocurrency. In contrast, altcoin ETPs, including XRP, showed more resilience. XRP ETPs saw $38 million of inflows. This continued a trend of optimism among investors, fueled by the belief the US Securities and Exchange Commission may soon drop their lawsuit against Ripple. Since November 2024 XRP ETPs saw $819 million of inflows.
Bitcoin’s price drop has mirrored the challenges of the broader market. Since early February, Bitcoin’s price has fallen from over $100,000 to under $85,000 because of US trade policies, a high-profile hacking of crypto exchange ByBit and various memecoin scams.
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