Investors withdrew a record $420 million from the BlackRock iShares Bitcoin Trust in a single day as Bitcoin plummeted to its lowest level of the year.
On February 26, BlackRock’s spot Bitcoin (BTC) ETF (IBIT) experienced an outflow of 5,000 BTC, marking its largest exodus to date and surpassing the $332 million it lost on January 2.
This significant outflow follows a staggering $1.1 billion exit from various products on February 24, culminating in a streak of seven consecutive trading days of outflows totaling nearly $3 billion.
The BlackRock fund’s withdrawal contributed to a total outflow for the day of $756 million, based on preliminary data from CoinGlass. However, ETF Store President Nate Geraci considers this a “short-term blip.”
The Fidelity Wise Origin Bitcoin Fund (FBTC) also experienced a similar seven-day outflow trend, with an additional $145.7 million withdrawn on February 26.
Other firms like Bitwise, Ark 21Shares, Invesco, Franklin, WisdomTree, and Grayscale faced outflows ranging from $10 million to $60 million.
Bitcoin ETF flows. Source: CoinGlass
Crypto markets have continued to decline, with total capitalization dropping by an additional 5.6% on that day to $2.9 trillion, as Bitcoin fell to a low of $82,455 on February 26.
The overall market correction now sits at 25%, with $1 trillion having exited the market since its peak on December 17.
However, CryptoQuant founder and CEO Ki Young Ju remarked that it would be a “noob” mistake to “panic sell,” pointing out that a 30% correction during a Bitcoin bull cycle is common, noting that it fell 53% in 2021 and still recovered to an all-time high.
“Investing by buying during price increases and selling during declines is the poorest strategy,” he stated on X.
Related: US spot Bitcoin ETFs see largest-ever daily outflow of $938M
Industry analysts and experts, including BitMEX co-founder Arthur Hayes and 10x Research head of research Markus Thielen, noted that most Bitcoin ETF investors are hedge funds seeking arbitrage returns rather than long-term BTC holders, who are now reducing their positions as these yield opportunities diminish.
Hayes suggested on February 24 that BTC could fall to $70,000 as outflows from spot ETFs continue. Traders have also set their sights on the $74,000 range amid threats from US President Donald Trump regarding increased trade tariffs.
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