The crypto ETF market faced another turbulent week from February 24 to 28, with significant capital outflows from both Bitcoin and Ether funds. Bitcoin ETFs saw a net outflow of $2.61 billion, marking the third straight week of losses, while Ether ETFs lost $335.35 million.

Bitcoin ETFs See Record Withdrawals

Investor sentiment took a sharp downturn on February 26, when Bitcoin ETFs witnessed a single-day withdrawal of $1 billion, the highest ever recorded. Major issuers, including BlackRock, Fidelity, and Grayscale, faced the brunt of the sell-off.

• BlackRock’s IBIT led outflows with $1.17 billion
• Fidelity’s FBTC followed with $568.65 million
• Grayscale’s GBTC saw $188.84 million in withdrawals

Other ETFs, such as Grayscale’s BTC, Valkyrie’s BRRR, and WisdomTree’s BTCW, also experienced heavy losses, pushing Bitcoin ETF total net assets below the $100 billion mark to $95.38 billion.

Ether ETFs Extend Losing Streak

The bearish trend was not limited to Bitcoin. Ether ETFs saw continued investor pullback, with a net weekly outflow of $335.35 million. Fidelity’s FETH took the biggest hit, losing $56.30 million, followed by BlackRock’s ETHA ($30.16 million), Bitwise’s ETHW ($20.72 million), and Grayscale’s ETHE ($11.66 million).

As a result, Ether ETFs’ total net assets fell below $9 billion, settling at $8.06 billion. This marked the seventh consecutive day of outflows for Ether ETFs, reflecting ongoing uncertainty in the market.

Key Factors Driving the Outflows

Market analysts cite multiple reasons for the sustained capital flight from crypto ETFs:

• Economic Uncertainty – Ongoing tariff policies and inflation concerns have impacted investor risk appetite.
• Security Concerns – The recent Bybit hack and other crypto thefts have weakened market confidence.
• Regulatory Uncertainty – Hopes for pro-crypto policies under President Trump remain unfulfilled, creating uncertainty among institutional investors.

Will the Trend Reverse?

Despite the heavy outflows, Bitcoin ETFs saw a modest inflow on the last trading day of the week, hinting at potential stabilization. However, analysts remain cautious, as broader economic conditions and regulatory developments will play a crucial role in shaping future investment trends.

For now, crypto ETFs remain under pressure, with investors closely watching macroeconomic signals and upcoming policy decisions.