Bitcoin spot exchange-traded funds (ETFs) experienced their worst day on record

Spot Bitcoin exchange-traded funds (ETFs) experienced their worst day on record this week since their debut last year as investors dumped more than $1 billion worth of investments within 24 hours.

The 11 exchange-traded funds (ETFs) tracking the price of Bitcoin experienced their worst day ever on Tuesday as investors pulled more than $1 billion in investments from the products within 24 hours, according to crypto analytics firm CoinGlass.

The group of SEC-approved Bitcoin ETFs saw their largest-ever outflows with $1,007 million in outflows on Tuesday, CoinGlass's data showed. That far exceeds the previous record of $672 million in daily outflows set in December.

Tuesday’s rout follows a six-day decline during which the assets saw more than $2 billion in outflows overall as investors fled amid concerns of economic uncertainty.

The record outflows come as Bitcoin itself—and the broader crypto market—experience the biggest selloff since the election of President Trump in November. Since the beginning of February, the original cryptocurrency's price has tumbled from more than $100,000 to less than $85,000, flailing under the weight of Trump's tariff policy, the historic hack of crypto exchange ByBit, and multiple memecoin scandals.

Some of the outflow is likely the result of retail investors deciding to sell now and lock in gains from the recent bull market, as they expect more pain to come, ETF analyst at Bloomberg James Seyffart explained to Fortune.

"People are probably just diversifying their exposures or unwinding some of their Bitcoin exposure," Seyffart said.

But he added that some of the ETF losses may also be the result of large institutional investors like hedge funds engaging in basis trading—a strategy that seeks to make profit off of the difference between the spot price of a commodity and the price of a futures contract on the same commodity.

While the latest spot Bitcoin ETF movements are significant within the crypto world, these kinds of swings are not shocking for traditional financial markets, says Seyffart. For most non-crypto ETFs, it's normal to see large amounts of inflows and outflows.

"We’re talking about billions of dollars coming out of these ETFs in rather a short space of time. But for now, it’s still par for the course for an ETF category," Seyffart said.

James Butterfill, head of research at ETF issuer CoinShares, agreed, adding that $1 billion is just a small fraction of the total $100 billion invested in Bitcoin ETFs.

"It’s actually quite small in the grand scheme of things," Butterfill said. "So it’s not particularly damaging."