Ethereum ETFs Witnessed Significant Outflows on February 25, with Investors Pulling Out 4,109 ETH Worth Approximately $9.91 Million

Ethereum ETFs witnessed significant outflows on February 25, with investors pulling out 4,109 ETH worth approximately $9.91 million.

Investors pulled a significant 4,109 ETH, approximately $9.91 million, from Ethereum ETFs on February 25, with Bitwise leading the withdrawals by reducing its holdings by 3,658 ETH, valued at $8.83 million.

The latest trend showcases a broader decline in institutional interest in cryptocurrency ETFs, mirroring similar movements in Bitcoin ETFs.

Bitcoin ETFs Also Experience Large Outflows

Institutions also pulled out a large sum from Bitcoin ETFs during the period. A total of 5,474 BTC, corresponding to $485.98 million, was withdrawn from Bitcoin ETFs. Among them, Fidelity distributed 2,620 Bitcoin, valued at $232.58 million, from its total holdings. After the move, Fidelity lowered its Bitcoin assets to 204,180 Bitcoin, with a total value of $18.13 billion.

The same pattern of massive withdrawals was previously seen when U.S. spot Bitcoin ETFs saw their largest market withdrawals on February 24. SoSoValue's data unveiled that 12 spot Bitcoin ETFs suffered $516.41 million in fund withdrawals on that day, the highest since January 8.

Fidelity’s FBTC faced the largest withdrawals with funds totaling $246.96 million, and BlackRock’s IBIT experienced significant redemptions, reaching $158.59 million.

The widespread selling pressure was evident as every Bitcoin ETF reported zero daily inflows on that occasion. Furthermore, the selling pressure extended to multiple funds, with Grayscale's GBTC suffering a loss of $59.5 million.

Meanwhile, Invesco Galaxy saw a reduction of $15.02 million from BTCO, and WisdomTree's BTCW dropped by $12.5 million. Despite the significant selling activity, the total volume of Bitcoin ETF trades during that day reached $2.9 billion. Since their initial launch, the pooled net inflow from these ETFs amounts to $39.04 billion.

Ethereum ETFs Continue To Struggle

The pressure on Ethereum ETFs persists as investors keep withdrawing funds.

The outflow of funds from Ethereum ETF products surged by $69.17 million to reach $78.09 million on February 24, compared to the previous day’s level of $8.92 million.

Among these products, BlackRock’s ETHA encountered the majority of the losses, exceeding $48.21 million as investors redeemed their investments, and Grayscale’s ETHE faced $15.45 million in withdrawals.

Additional funds managed by Bitwise and Grayscale encountered similar trends, with investors withdrawing $9.71 million and $4.73 million from both products respectively.

Investors continue to shirk their support for Ethereum ETFs due to the general market instability and regulatory ambiguities in the industry. No transactions or changes in ownership were reported for CETH by 21Shares during this period. Four other Ethereum ETFs remained inactive.

Bitcoin and Ethereum exchange-traded funds encountered a withdrawal of resources as the cryptocurrency market displayed greater instability.

The Bitcoin market has maintained primarily stable trading at $94,000 to $98,000 throughout February until outside market events triggered additional price drops to below $90K. The recent Ethereum and related token price downfall stemmed from Bybit exchange hackers stealing $1.4 billion during a security breach.

Bitcoin reached an 18.5% decline to $88,614 when it achieved its all-time high valued at $108,786, precisely during Donald Trump’s presidential inauguration.

Despite the market decline, institutional investors such as MicroStrategy have continued adding Bitcoin to their portfolio, with the firm buying 20,356 BTC, increasing their total holdings to nearly 500,000 Bitcoin.