The last week of February has arrived and the crypto market is still under pressure. It continues to struggle, and that is clear reflected in the latest ETF data.
Bitcoin ETFs saw outflows of $315.9 million this week, of which $303.5 million came from BlackRock’s IBIT. Meanwhile, Grayscale’s BTC Mini ETF attracted $36 million, offering cheaper Bitcoin exposure for cautious investors.
Bitcoin ETF Analysis
According to Farside Investors factsMid-February was a difficult period for Bitcoin [BTC] ETFs, when major investors withdrew money from the market three days in a row.
Sales began on February 17, when the market saw $104.9 million exit.
Source: Farside Investors
Most of this came from BlackRock’s IBIT, which lost $119.7 million alone. Grayscale’s BTC Mini ETF tried to balance this with $36 million in new money, but overall investors were still heading for the exit.
The situation deteriorated over the next two days. On February 18, outflows grew to $133.3 million.
They then jumped again on February 19 to $165.8 million. Once again, BlackRock led the sale, with $164.1 million leaving IBIT on that single day.
But at the end of the week the situation changed.
On February 20, Bitcoin ETFs finally saw money coming in again, with net inflows of $88.1 million. IBIT also reversed its trend and became the largest contributor, adding $64.5 million.
The altcoin paradox
While Bitcoin ETFs received most of the attention, the altcoin ETF market told a very different story about what major investors currently prefer.
Ethereum followed a pattern similar to Bitcoin, but showing less weakness. Things started the week strong on February 17, with $48.6 million in new inflows, mainly thanks to BlackRock’s ETHA fund.
However, this positive momentum did not last long. By February 19 Ethereum [ETH] ETFs saw massive outflows of $130.1 million. Of this, nearly $97 million came from BlackRock alone.
The situation ended on February 20, when ETH ETFs recorded zero net flows, meaning no new money coming in and none leaving.
Solana is an exception
Solana, on the other hand, became the top choice for institutional investors. Despite the market’s caution, Solana ETFs have performed well stable influx since February 9.
Between February 17 and 20, Solana [SOL] continued to attract a steady influx. The highest point came on February 19, when six million dollars entered the ecosystem in a single day.
Bitwise led in total weekly volume with $11.7 million, while BlackRock’s BSOL fund supported the rally with consistent daily inflows.
At the same time the Ripple [XRP] ETF market showed a very cautious approach. It started quietly and saw a small decline of $2.21 million on February 18.
It briefly rebounded on February 19 with an inflow of $4.05 million, but this did not last long. On February 20, activity slowed again and returned to near zero.
What’s more?
Overall, the crypto ETF market is becoming increasingly divided. Bitcoin and Ethereum are under more pressure, while newer assets like Solana are gaining momentum.
This shift became evident on February 17, when T. Rowe Price announced plans for an Active Crypto ETF that includes not only Bitcoin and Ethereum, but also Litecoin. [LTC]Solana and Cardano [ADA].
This move is important because it shows that major financial companies now see crypto as a serious investment space. Instead of treating it as a risky experiment, they build strong products that include multiple digital assets.
Final summary
- The heavy outflows from BlackRock’s IBIT indicate that institutions are reducing risk during uncertain economic conditions.
- Overall, the crypto ETF market is becoming increasingly segmented, with different assets attracting different types of investors.