‘Hot Money’ Flees Bitcoin ETFs at Record Pace in Risk Aversion

February 28, 2025 at 6:15 PM UTC

This article is for subscribers only.

Investors have pulled a record $3.3 billion from US spot-Bitcoin exchange-traded funds in February, poised for the biggest monthly exodus since they debuted, as investors sought refuge in safer assets amid rising geopolitical tensions and persistent inflation concerns.

The group’s net outflow came amid a slide of as much as 28% in Bitcoin from its record high on the day Donald Trump was inaugurated as president, including its steepest monthly decline since June 2022. Other cryptocurrencies have also faltered, with an index tracking top digital tokens reaching its lowest level since the US Election Day in November. In all, the rout has wiped out roughly $1 trillion in crypto market value. Fidelity Wise Origin Bitcoin Fund (ticker FBTC) has posted the biggest outflow among these funds, amounting to more than $1.4 billion.